Mortgage Rate Locks Delayed

by Jennifer
(Texas, USA)

Regarding Mortgage rate locks delayed: Hi Kate, I have a contract on a home due to close September 30th. I am doing a USDA rural development loan. I tried to get my loan officer to lock my rate at 5 percent last week.

But the loan guy wouldn't because my loan was not ready to submit to underwriting due to not having the appraisal back. Now the appraisal is being done this week but mortgage interest rates are going up. So I can't get 5% now without paying 1.5 points.

Do I have any rights? Is this right? Thank you!

Kate Answers: Mortgage Rate Locks delayed

Hi Jennifer, Locking in an interest rate is one of the pivotal moments in any mortgage transaction. I am sure this is frustrating to you watching rates change on a daily basis while your lock is postponed.

The real issue to me is why were you not informed that mortgage rates could not be locked from the onset of the transaction. But since you can't change that, what is your course of action? Here is what I recommend.

1- Ask the loan officer what you can do to hasten the loan approval while you are waiting for the appraisal. Review Kate's Mortgage Information Planner to see if there is any paperwork you think might still be needed.

2- Prepare for your mortgage rate lock. At Nitty Gritty Mortgage Interest Rate Lock, you will find out the difference between a good faith estimate and a mortgage rate lock agreement.

3- Discover why I say to get mortgage broker fees in writing!

4- Learn the lingo and how to protect your mortgage rate lock at Yield Spread Premium - Say What?

5- Visit Mortgage Rate Lock-In FAQs for solutions based on inquiries from other Contributors just like you. You won't be left with any doubt that locking in rates is an emotional subject!

Take a moment to bookmark Mortgage Rate Locks Delayed to your favorites. Jennifer, this is your page. So you can invite friends to comment on it. They can also ask another question of their own like you did.

Best Wishes,




PS By the way, here are a list of questions to ask BEFORE locking in a mortgage rate.



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