First Time Home Buyers Loan

by Jaime from USA

Ask Kate: First Time Home Buyer's Loan - Is this how a mortgage rate lock works? Kate, I am in the process of buying my first home. The lender which my mortgage broker was working with did not close the loan on time and my mortgage broker locked in an interest rate.

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My mortgage broker said that the lock will expire and needs to be extended. Do I have to pay for this? My mortgage broker did not ask me if I wanted to lock in the interest rate, she just took upon herself to do it.

Is that how it works? Thanks, Jaime

Kate Answers: First Time Home Buyer's Loan - Is this how a mortgage rate lock works?

Jaime, In most cases, the borrower decides when to lock in their mortgage rate. And why not! After all, who else will be making the monthly house payments for the next 30 years?

I understand it's not easy for first time home buyers to know what to expect during their first real estate transaction. So I suggest you go back to your mortgage broker and ask these questions:

  1. Where is the documentation saying my interest rate was locked?

  2. How was the length of the lock-in period determined?

  3. What prevented my mortgage from closing on time?

  4. Why am I responsible to pay for a rate lock extension?

For anyone who has have not yet begun the mortgage process, here is how to qualify a lender BEFORE making loan application. Read about Robin who learned the hard way why there is much more to choosing a lender than getting quoted the lowest mortgage interest rate.

Keep this list of questions handy as you begin interviewing potential mortgage lenders. Remember before you apply for a mortgage pre-approval, you should ALWAYS qualify your lender!

In the meanwhile, I hope you'll follow my links found at the bottom of this page. My articles will give you an insider's view of mortgage rate locks. Let me know if you have further questions, of course!

Don't forget to bookmark First Time Home Buyer's Loan - Is this how a mortgage rate lock works? to your favorites so you can easily return in the future. For more solutions, don't miss these letters from other home buyers like you at Mortgage Rate Lock FAQs.

Jaime, please come back and visit often. Help me spread the word by sharing my website with your friends. Remember, all of my information is free!

Best Wishes,

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