Loan Estimate, and the “intent to proceed.”
The "intent to proceed" evidences that you are interested in obtaining a loan from that particular lender. It does not commit the prospective buyer to get a loan from that lender. It simply states that you have signaled intent to proceed with the lender’s loan process under the terms described in the loan estimate.
PROCESSING: RATE LOCK
The world of loans and mortgages is fast-paced, and interest rates can change at any time. A mortgage rate lock guarantees the interest rate of your loan for a specified period to protect you from rate hikes through your contractual closing date. In a purchase process deciding when to lock the loan needs to take in to account the expected closing date. So, if your target closing date is 30 days from the signing of the contract you may want to lock for 45 or 60 days to protect against unanticipated delays by the seller or you or perhaps the lender. Each lender typically sets mortgage rates once each weekday morning. In a volatile market the rates can change after they have been posted on a given day. This is referred to as an intraday change. Once locked, the loan’s interest rate won’t change barring any changes to your application details. You are protected from increases in rates, and the lender is protected from having to move to a lower rate, unless they offer the option for a "float down." Each lender has their own rate and lock roadmap. Your loan officer will review the entire process with you so that you can make an informed decision about how and when to lock your loan. Your loan officer is not permitted to suggest that any time
31
Powered by FlippingBook