We offer online locks for 30, 45 and 60 day periods. Refinance transactions may be locked at the time of loan application. Purchase transactions may be locked once you have an accepted offer on a property. You may apply and lock online, 24/7.
How Do I Lock?
When you submit your online application, it will be analyzed by our Automated Underwriting System and, in most cases, be immediately approved. A rate chart will then appear showing all available rates for your loan request, along with the corresponding closing costs. You select the rate you wish to lock. You will receive a Lock Confirmation by email the same day (or the next business day if you lock after hours or on a weekend). In the event our Automated Underwriting System is not able to provide an instant online approval, your application will be forwarded to a Loan Officer who will contact you the same business day to resolve any issues with your loan application and get you in a position to lock your rate.
Are Any Fees Collected When I Lock?
You will be asked to submit an appraisal fee by credit card at the time you lock your rate. For conventional loans, the appraisal is $450 ($550 if the property is located in Alaska, Colorado, Hawaii, Montana, Oregon or Washington). For VA loans, the appraisal fee is based on the VA’s Appraisal Fee Schedule and varies by location and property type. These funds will be maintained in a trust account and used to pay for your appraisal, a service performed by an independent third party.
How Long of a Lock Should I Take?
Most of our customers lock for 30 days, which is plenty of time to close your loan as long as all parties do their part. On a purchase transaction, you want to make sure your lock period at least runs through the scheduled date of your closing. On refinance transactions involving the subordination of an existing second mortgage or home equity line of credit we recommend a 45 day lock.
What Happens if the Loan Process Takes Longer Than My Lock Period?
If the delay is caused by us, we will extend the lock at no cost. If the delay is caused by you or a third party service provider your loan will be relocked at the higher of the pricing in place on the date of your original lock or current pricing.
Delays caused by you or a third party service provider include but are not limited to: requesting subordination of an existing second mortgage or home equity line of credit; not supplying documentation in a timely manner; providing inaccurate, inadequate, obsolete or incomplete documentation or loan information; changes in loan terms or loan programs; HOA delays in completing and returning questionnaires; delays by a title company, closing agent or appraiser; and delayed appraisal inspections, termite inspections, not acknowledging receipt of a Loan Estimate or Closing Disclosure the same day, survey inspections or document signing appointments. If you believe any of these issues may occur on your loan, you may want to consider a longer lock period.
Can I Choose a Different Rate After I’ve Locked?
You may change the rate and corresponding points/rebate as long as you are staying in the same program and the rate you would like is still available. Your revised lock will be priced based on the pricing in effect for that rate on the date of your original lock.
Can I Change My Decision Regarding an Escrow Account After I’ve Locked?
You may change your decision as to whether or not you want to set up an escrow account for the payment of your taxes and insurance. Establishing an escrow account improves your points/rebate by .25%. Your points/rebate will be adjusted by .25% just as if you had made that decision at the time of your lock.
Can I Change to a Different Program After I’ve Locked?
Changing programs after you’ve locked is allowed but your revised pricing will be the higher of the pricing in place on the date of your original lock or current pricing. It’s always best to take the time upfront to choose the program that is best for you.
Can I Revise My Lock to a Longer Lock Period During the Process?
You may lengthen your lock period during the process (for example, from a 30-day lock to a 45-day or 60-day lock). The revised lock will be the higher of the pricing in place on the date of your original lock or current pricing. It’s always best to take the time upfront to choose the lock period that is best for you.
Can I Relock My Rate If I Cancel My Application and Reapply?
If you cancel your application and reapply within 30 days of your cancellation date, your pricing will be the higher of the pricing in place on the date of your original lock or the date of your new lock. If 30 days has passed since your cancellation date, your lock will be based on the pricing in effect at the time of the new lock.
What Happens if I Let My Rate Lock Expire?
If you let your rate lock expire and relock within 30 days, your pricing will be the higher of the pricing in place on the date of your original lock or the date of your new lock.
Should I Lock or Float My Rate?
On a refinance transaction, if the savings you will achieve with the new lower rate will recapture the closing costs of the loan in a relatively short period of time, you should probably go ahead and lock your rate and close your loan. Trying to time the bottom of an interest rate cycle is tricky and each month you delay costs you in the form of carrying a higher interest rate on your old loan. If rates fall further, you can always refinance again.
On purchase transactions, in times of stable interest rates, most of our customers lock when they are within 30 days of closing. Locking for a period longer than 30 days increases the cost of the loan slightly but is sometimes a good idea if rates are volatile. If your closing is more than 30 days out, we recommend you compare rates and points on our website for 30, 45 and 60 day locks and make your decision accordingly.