work with, they commit to the loan officer and start the next step.
Once in contract, the loan disclosures are emailed to you to be signed electronically, includes an important document called the “intent to proceed.” At this point, the appraisal can be ordered. Most lenders do require payment upfront and you will receive a copy of the appraisal.
PROCESSING: RATE LOCK
Once that paperwork is done, in most cases the next step is for the lender’s licensed loan officer to lock in the rate. By that I mean that the loan officer commits that the lender will give the borrower a certain interest rate on the loan. The world of loans and mortgages is fast-paced, and interest rates can change at any time. A rate lock is important because it guarantees that a mortgage lender will give you a certain interest rate, at a certain price, for a specific time. Exactly when the lender locks in the rate is going to vary. Some lenders lock it in at this point, some wait until a later time in the process. A rate lock protects the borrower from rising interest rates in the period between sales agreement execution and closing (often a month). If you lock in a rate of 6.25%, you will only have to pay 6.25% interest even if rates rise while you go through the loan application process. A rate lock is commonly good for 30, 45, or 60 days, though that time period can be shorter or longer. After that period expires, you are no longer guaranteed the locked-in rate unless the lender agrees to extend it. Therefore, arranging a prompt closing is crucial.
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