Does the word "lock" have any meaning if the rate continues to adjust during that certain period? If so, why do some lenders use the word "lock", when it should be "conditional" that they need to use? As a newbie, this is very deceiving. I thought "locked" meant locked
Hi Rodney! i agree, totally misleading. I've been in the biz a long time, and for the first time last year, ran into a lender who told me the rate is "locked"... but followed up with "but its not a forward-moving lock". "...so it's not locked then!" i spat back! Im finding that the terminology each lender uses can be very different across the board, and i agree, its confusing and misleading for EVERYONE in a transaction, newbies and seasoned vets alike.
I suggest moving forward asking for a "lock confirmation", or in a consumer loan setting, asking for a "locked LE".
it may not resolve your issue still, but having it in writing is better than nothing, and hopefully gives you a leg to stand on if you need to duke it out.
Hi Rodney! i agree, totally misleading. I've been in the biz a long time, and for the first time last year, ran into a lender who told me the rate is "locked"... but followed up with "but its not a forward-moving lock". "...so it's not locked then!" i spat back! Im finding that the terminology each lender uses can be very different across the board, and i agree, its confusing and misleading for EVERYONE in a transaction, newbies and seasoned vets alike.
I suggest moving forward asking for a "lock confirmation", or in a consumer loan setting, asking for a "locked LE".
it may not resolve your issue still, but having it in writing is better than nothing, and hopefully gives you a leg to stand on if you need to duke it out.
Unless you pay for it, I'd consider nothing to be locked. Its just shady marketing/sales by the lenders. A lot of lenders will talk up a teaser interest rate, work your file towards closing, then spring a change on you right before closing. Many borrowers are stuck and have limited options so will still close at the lesser terms.
Always work multiple lenders toward closing to give yourself options.
Unless you pay for it, I'd consider nothing to be locked. Its just shady marketing/sales by the lenders. A lot of lenders will talk up a teaser interest rate, work your file towards closing, then spring a change on you right before closing. Many borrowers are stuck and have limited options so will still close at the lesser terms.
Always work multiple lenders toward closing to give yourself options.
How do you pay for a "lock"? Didn't know that was an option and why don't lenders offer it? When you say work multiple lenders while under contract, I also didn't know that was an option or even allowed. I have to submit paper work and if I have 4 lenders, I'd be doing this 4 times over? This lender also wants to have me unfreeze my credit reports right before closing so that they can see if my credit score dropped and it did. I had to take out a loan to make sure I had enough for reserves and closing costs. I'm sure they won't hesitate to use that against me by justifying an increase in the interest rate. There goes most of my cash flow. In RE, I've noticed that buyers usually get the low end of the stick in everything. Out of all the elements in an investment, it's the buyers that can get royally screwed over
Unless you pay for it, I'd consider nothing to be locked. Its just shady marketing/sales by the lenders. A lot of lenders will talk up a teaser interest rate, work your file towards closing, then spring a change on you right before closing. Many borrowers are stuck and have limited options so will still close at the lesser terms.
Always work multiple lenders toward closing to give yourself options.
How do you pay for a "lock"? Didn't know that was an option and why don't lenders offer it? When you say work multiple lenders while under contract, I also didn't know that was an option or even allowed. I have to submit paper work and if I have 4 lenders, I'd be doing this 4 times over? This lender also wants to have me unfreeze my credit reports right before closing so that they can see if my credit score dropped and it did. I had to take out a loan to make sure I had enough for reserves and closing costs. I'm sure they won't hesitate to use that against me by justifying an increase in the interest rate. There goes most of my cash flow. In RE, I've noticed that buyers usually get the low end of the stick in everything. Out of all the elements in an investment, it's the buyers that can get royally screwed over
is this for commercial real estate? I wouldn't work 4 lenders, how about 2?