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Today we were told by our loan officer that we could lock in our rate, which we did. Does that mean we have a great shot at getting the loan, or is it still up in the air?

If they disqualify us, can we try for another lender/program/etc, or should we not worry since we were already pre-approved back in October, and they locked us in for our rate today and gave us what our payment will be?

5 Thoughts on Can I get the loan?? I locked in my rate?!?
  1. Reply
    REALTOR Marc Pun
    February 3, 2014 at 3:52 pm

    If they reviewed all your personal information; credit, debt, income and verified all the information, then you should be able to still get the loan. It also looks better when you submit an offer to purchase a home. But nothing is guaranteed, if you don’t get the loan you can still obtain a loan for other lenders.

    Also, make sure your lending firm deals with in state mortgage lenders. Every state has different laws and practices. This might delay the settlement if the out of state lender does not understand your state mortgage and real estate laws. Good luck.

  2. Reply
    CA Mortgage Planner
    February 3, 2014 at 4:08 pm

    At this point, there are no guarantees. Just because your loan officer told you that your rate was locked, does not mean you have the loan! This is the point where the underwriter scrutinizes every single part of your loan… from your income to your property details and if one single thing does not meet their criteria, your loan will be either a) counter offered or b) declined.

    Shopping around never hurt anyone! Give me a call or fill out this form.

  3. Reply
    February 3, 2014 at 4:13 pm

    A locked in rate does not guarantee loan approval. Keep pressure on the loan officer until the give you WRITTEN loan approval, NOT a pre-approval. There are too many loop holes with the words pre-approval. Until you have the actual approval in hand, to buy that particular house, nothing is certain. I’m not saying the loan officer is untrustworthy, you just need to be certain that your file has been fully underwritten and even the loan officer knows that.

  4. Reply
    J g
    February 3, 2014 at 5:06 pm

    If you have locked in your loan that means that he did a prequailfication on your loan and the chances are pretty good that you qualify. You can still qualify for other loans . If in fact the loan does not get apporved at that particular lender the Loan officer may send it to anohter lender.

  5. Reply
    February 3, 2014 at 6:05 pm

    When lenders “lock”, they commit to lend at a specified interest rate and points, provided the loan is closed within a specified “lock period”. (Points are an upfront charge expressed as a percent of the loan amount). For example, a lender agrees to lock a 30-year fixed-rate mortgage of $ 200,000 at 7.5% and 1 point for 30 days. A lock is contingent on the borrower meeting the lender’s underwriting requirements for the loan.

    A less savory practice that underlies many lock failures is to load the loan approval with conditions that allow the lender to back out. Every lock is conditioned on the borrower being approved for the loan, and approval is frequently subject to conditions. Most of these are completely reasonable, for example, the removal of a lien on the property. But some conditions are designed to allow the lender to exit the lock lawfully.

    I recently heard of an interesting one from a puzzled borrower. His commitment letter stated that if the loan application, which the lender had approved, was rejected by the investor to whom the lender intended to sell the mortgage, the lender’s lock was no longer valid. This borrower was alert, caught the condition, and asked me what I thought about it. I told him that it was the lender’s responsibility, not his, to determine whether he met the investor’s requirements. The lender removed the condition.

    Many lenders would rather protect themselves with contractual escape clauses rather than charging a non-refundable fee because they know that most borrowers borrowers should prefer lenders who charge a non-refundable lock fee. Lenders who protect themselves from being gamed in stable and declining rate markets are more likely to honor their locks in a rising rate market.

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