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 rate lock will be extended according to our extension or relock policy. Currently an extension is made with an adjustment to your points/rebate of .20% for every 5 days needed at the end of your rate lock. 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 plus an additional cost of .25% or the pricing on the date of your new lock plus an additional cost of .25%.
Delays caused by borrowers 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; 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.