I once heard a story from a fellow lender about a woman who wanted to buy a home. She went through the pre-approval process and got a loan estimate. She then discussed rates with the lender and seemed satisfied with the terms. However, she did not get a rate lock because she was in a hurry and didn’t want to go through the process at that time. She came back to the lender three months later to finish going through the loan origination process. However, she was shocked to find that the interest rate the lender offered had increased significantly since her last meeting. The lender had to politely but firmly explain to her that without a rate lock, there was nothing she could do. The woman ended up signing for the loan under the new, higher interest rate — all because she couldn’t spend the time to lock in that rate when she had the chance. And really, it’s not that woman’s fault she missed out on a better interest rate. These loan processing steps are complex, with many variations on the moving parts. That’s why having an excellent lender’s loan officer is paramount to your understanding and satisfaction with the process. The loan officer must make time to explain the documents in detail and be of great service to you. The loan officer has the obligation of knowing in detail and explaining the lender’s loan programs and requirements. That’s why you don’t want to work with just any old loan officer. Find the one who will treat you well and walk you carefully through the steps. Choosing the right lender could mean the difference between saving thousands of dollars...or losing thousands of dollars.
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