Do I need the Lock-In to be in Writing?

Part 2

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

Do I need the Lock-In to be in Writing?

Most lenders have preprinted forms that spell out the exact terms of the Lock-In agreement. Some lenders may only give you an oral Lock-In which is promised to you on the telephone or at the time you are filling out the application. Oral agreements are usually difficult to prove should a dispute arise.  So it is always best to get the Lock-In in writing.

When you get a Lock-In form, take the time to read it. It just may contain some crucial information that you do not understand or it is written in fine print.  For instance, a Lock-In could become void through some unrelated action such as a change in the maximum rate for Veterans Administration guaranteed loans.  Ask for a blank Lock-In form and read it carefully before you apply for the loan. If you can, take it to a lawyer to read.  Make sure that you completely understand what the Lock-In form is saying.

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