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 is a right or wrong time to lock. The LO is responsible to provide and explain all of the information that you need to make an informed independent decision. Your loan officer will explain the rates available based on the components of your profile such as loan amount, FICO score, Loan-to-Value, term of rate lock, etc. You will be made aware if the loan that you are considering has a “float down” feature. The float down is a mechanism (usually for a fee) of lowering your locked in rate should the market rate go down after you lock but before your closing date. Your loan officer will also explain your lender's policy regarding rate lock extensions should your rate lock expire before the loan can close.
PROCESSING: THE AP G: THE APPRAISAL
A crucial step in the loan approval process is the lender’s appraisal of the property. The lender will cause a licensed appraiser to be hired on your behalf (you pay the fee when the work is being done), often through an Appraisal Management Company (AMC). The lender cannot have any interactions with the appraiser and will not know their identity until the report is complete and delivered to them and to you. Access to the property for the appraiser's visit will be arranged through the real estate agents or the current owner. Borrowers may not be involved in the process. An appraiser is a trained and licensed real estate professional who is regulated by state appraisal boards and must follow federal, state and local laws and regulations. Each appraiser is required to remain independent and objective—meaning they can’t be
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