How Long are Lock-Ins Valid?

Part 5

This is part five of a nine part article on the understanding of Mortgage Lock-Ins.

How Long are Lock-Ins Valid?

A lender will usually promise to hold an interest rate and number of points for a certain number of days. To get the specified terms, usually requires that you settle on the loan within that period. Lock-Ins of 30 to 60 days are very common.  Some may only offer it for 7 days, after your loan is approved. Some may offer it for 120 days. Usually the fee may be higher the longer the time period is for the Lock-In. The Lock-In period should be long enough for settlement and other contingencies that are imposed by the lender before the Lock-In expires. You should find out how long it takes to process loans in your area. Ask the lender to give you an estimated time in writing. Ask them to include delays that may arise in providing materials about your financial condition and if you are building a new home, possible construction delays. Ask for a Lock-In with as few contingencies as possible.  This will help you in deciding the length of Lock-In time you may need.

This and many other helpful consumer articles may be found at www.debtkiller.com or by reviewing Janna's many regular personal financial updates at her blog, http://jannajones.blogspot.com