The loan estimate may be provided by a mortgage broker or the lender. When a borrower obtains a loan estimate, it shows the lender that the borrower has at least some interest in working with them.
PROCESSING: INTENT T G: INTENT TO PROCEED
Working with the real estate agent and lender’s loan officer, the buyer signs all loan disclosures, the loan estimate, and signs off on an important document called the “intent to proceed.” The intent to proceed evidences that the buyer is interested in moving forward with 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 the buyer has signaled intent to proceed with the lender’s loan process under the terms described in the loan estimate.
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 a buyer 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.
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