Hi everyone, I’m in a tough spot.
I’m refinancing and locked in a low rate with a 21-day lock, which ends on 10/9. I’ve submitted all my documents on time, paid $600 for the appraisal last Friday, and $100 for a condo questionnaire.
Now my loan officer says everything is ready to sign and close, but due to a “government waiting period,” we can’t close until 10/11. He’s saying I’ll have to pay almost $600 to keep my current rate.
I feel like this doesn’t sound right. What kind of government delay takes over a week?
Any advice would be appreciated. Thanks. It’s urgent.
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There’s a 3-day waiting period from the time the Closing Disclosure (CD) is issued until you can sign the closing documents, followed by another 3-day rescission period before funding can occur. It seems like they either didn’t or couldn’t send out the CD in time to meet the funding deadline on the 9th.
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Thanks for your response. Are these timelines standard? Is it actually feasible to get it done in time? I’m wondering if it’s possible but he’s just unwilling to do it. If that’s the case, I might back out at the last minute.
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A 21-day lock on a refinance was preparing you for this… 21 days ago.
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Especially with condos, those associations take forever to provide lenders with anything, and they charge $500 just to send over PDFs, lol.
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No, those are federal waiting periods. While you can technically apply for an exception if the situation causes significant financial hardship, qualifying for that exception is extremely rare in the mortgage world.
Your best option is to highlight any delays on their part. If they took too long to complete certain tasks, management may be able to approve covering the cost of the extension.
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Yes, it’s a standard process and a federal requirement.
There’s a mandatory 3-day waiting period after receiving the initial Closing Disclosure (CD) before you’re allowed to sign the loan documents. After signing, there’s another 3-day wait before the loan can be funded.
For example, if you received the CD today, the earliest you could sign the documents would be 10/7/2024. Assuming this is for a primary residence (not a second home or investment property), the loan would fund on 10/11/2024.
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Let them know that if they don’t cover the fee, you’ll take your business elsewhere. They should cover the cost of your lock extension.
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You need to inform your loan officer that you won’t be paying for the lock extension; the lender will cover it. At this stage, they won’t let you walk away.
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Why won’t they allow me to walk away at this stage?
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They have invested additional costs and may take the $600 loss to maintain the deal.
Alternatively, they could refuse and allow you to walk away.
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Rates have decreased since you locked in. Your expenses should decrease, not increase. Give them a piece of your mind.
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No, I was fortunate enough to secure the lowest rate, but I suppose that’s no longer the case.
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Rates have not decreased at all since they were locked. They were locked on September 18th, and rates have increased since that date.
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Haha, what are you talking about? Prices have been getting worse.
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Starsky, I might be mistaken, but CBS News reported that the Fed lowered rates by half a point on Wednesday, September 24, 2024. Also, a $600 price swing isn’t significant either way. It’s worth the cost to finalize the deal.
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Do you believe that the Fed rates are linked to mortgage rates? They actually aren’t. In fact, mortgage rates have increased since the Fed made cuts, not decreased. Why do people come to forums that demand a certain level of understanding when they clearly don’t have it?