Validating credit card
Soon thereafter, the underwriter will return one of four possible decisions about your application: approval, approved with conditions, suspended (more documentation required before a decision can be rendered), or denied.
You will also see that every program offers lock periods of 15, 30, or 45 days and say you have a 45-day escrow.Keep in mind, however, a locked-in rate may also prevent you from taking advantage of rate decreases during this period.As a preliminary step, you should get pre-approved by a reliable lender before searching for a home.In this instance, the closing agent did not bring these instructions to the attention of the borrower at the time documents were signed, and it sounded as if the loan representative stopped doing their job.While common sense would tell you that it was in their best interest to get your loan funded, it is still your loan and your responsibility to assure success.That means you can lock in immediately and ensure your rate so long as you close within that 45-day period.You could wait 15 days and lock for 30 days at a slightly cheaper price, but you take the risk that the good rate you got 15 days before may not be available. That’s why it generally makes sense to lock in right away and avoid the risk of having increased interest rates blow your deal. Let’s say you can lock in for 6% and 1 point today but you choose not to do that.The second critical task is to lock in your interest rate and loan terms with your lender (more on this later).Locking in commits your lender to fund your loan at the specified rate.It’s especially important to leave plenty of time for items to be corrected on your credit reports, and for any legal issues to be documented and settled by the relevant authorities, if necessary.Otherwise, it’s entirely possible for the sales contract or loan approval to expire before all the conditions are met.