Applied for refinance in early October and we locked in the rate for 4.875% for 15 years. We filled out all the paper work, and then lender came back and said he has to wait for rate to drop down or else they would lose a lot of money. It has been 1 month, and we asked for updates, and they said we are still waiting with 6 other people. When asked what the time frame was, he said indefinite. What are the protocols for this? Is there anything else we can do?
Do you have signed disclosures showing that rate being locked? If not, the LO “most likely” gave you a quote the day you talked and the rates increased before your initial application was processed
Lennon said:
Do you have signed disclosures showing that rate being locked? If not, the LO “most likely” gave you a quote the day you talked and the rates increased before your initial application was processed
I double checked, and yes we have a signed disclosure form.
Lennon said:
Do you have signed disclosures showing that rate being locked? If not, the LO “most likely” gave you a quote the day you talked and the rates increased before your initial application was processed
This! And they also have you tied in now because rates are unpredictable and you may be waiting for a year or 60days. 2 major questions from your side should be
- what fees did you pay already?
- are you completely through underwriting except locking in the interest rate?
If the answer to the second question is no then I would walk away. They are not doing the work to be prepped for when rates drop.
Only person losing money is the lender cus they didn’t help you lock your rate and fishing you to wait with them so you don’t go somewhere else.
Your loan officer sucks. They played the float game and got burned. I’d cancel the deal and wait till you can lock the terms you want at time of application
Dana said:
Your loan officer sucks. They played the float game and got burned. I’d cancel the deal and wait till you can lock the terms you want at time of application
Actually, if you have disclosures the lender sucks, not the loan officer. I would threaten to go to state regulators…especially if you have anything in text or writing that shows that they are asking you to wait. Otherwise someone like this will find a reason to blame it on you.
@Blake
99% sure the LO floated the rate. Loan Estimate shows rate wasn’t locked. OP signed initial disclosures = SOL.