Expiration of Lock-ins

• What rate will be charged if the lock-in expires before settlement-the rate in effect when the lock-in expires?
• If you don’t settle within the lock-in period, will the lender refund some or all of your application or lock-in fees if you decide to cancel the loan application?
• If your lock-in expires and you want to get another lock-in at the rate in effect at the time of the expiration, will the lender charge an additional fee for the second lock-in?

Complaints About Lock-Ins

Knowing what to look for puts you in a better position to decide whether, when, and how long to lock in mortgage terms. Also, by helping to keep the loan process moving, you can lessen the chance that your lock-in will run out before settlement.

But what if your lock-in does lapse? If you believe that the lapse was due to delays caused by the lender or someone else involved in the loan process, you should try first to reach a mutually satisfactory agree­ment with the lender. If that effort fails, con­sider writing to the appropriate state or fed­eral regulatory agency.

Some lender actions, such as offering lock-­in terms which are impossible to fulfill, fail­ing to process your loan diligently, or caus­ing your lock-in to expire are improper-and may even be illegal. In addition, because you may have contractual rights under your lock-­in or loan commitment, you may want to consult with an attorney. Be aware, though, that complaints may not be resolved as quickly as may be necessary for a home purchase.

Depending upon their authority under applicable state or federal law, regulatory agencies may either attempt to help you resolve your complaint directly or record your complaint and recommend other action.