Believe Me, Your Rate Lock Expires Sooner than You Think!

On Wednesdays, the Mortgage Bankers Association (MBA) releases a Weekly Applications Survey, which is a detailed analysis of new mortgage applications submitted over the past week.

More than likely, this week’s MBA report will tell us precisely what most of us already know – a whole lot of mortgage activity has roared to the forefront due to plunging mortgage rates – and a lot of it is taking place right here in Lakeland, Florida.

Hopefully, you’re one of many who are taking advantage of today’s low mortgage rates.  If so, I please read and understand this statement:

When your rate was “locked,” it was done so with an expiration date!

More than likely, that rate lock was set for thirty (30) days.

Some of you may be thinking… “Wow, 30 days is a long time! That’s a whole month of secured-rateness!” (Not really a word, of course.) While you may feel that 30 days is a lot of time, I offer you these words from our good friend Mr. Lee Corso of the ESPN College Football Game Day program:  Not So Fast My Friends! Especially if your rate locked before Thanksgiving, as these lock periods will lose a total of 14 days due to weekends and holidays – not to mention the 4 days you lose because of the Right To Cancel clause.

In truth, your 30 day lock really nets about 12 “working” days to underwrite and approve your mortgage – which is not much time at all.  What’s worse is that underwriting departments at even the largest lender companies have been so severely downsized of late that they are woefully understaffed to where they struggle managing a moderate work flow in a timely manner.  The fact that December is a prime vacation month doesn’t help things much, either!  (If you sense urgency here… Good.  That’s the point!)

So, Kevin.  How Do I Make Sure My Loan Closes Before My Rate Lock Expires?

I’m so glad you asked!  The best ways for you to help your Florida mortgage broker close your loan before your 30-day rate lock expires is to be as responsive as possible with all of your “homework” items:

• Return to your mortgage broker, by fax if necessary, all pay stub, insurance declaration pages, bank statements (all pages, even that blank one at the end!), etc. the same day they are requested
• Appraisers are getting busy again, so be sure to schedule your required appraisal as soon as possible
• If a closing date is scheduled, stick to it.  Delaying your closing date by even one day can negatively impact your rate lock.

Time is money folks, in this case… Yours!  Mortgage rates are hovering around 3-year lows, and the number of homeowners refinancing their loans is growing.  Lender underwriting departments are so overworked now that they’re screaming like a pack of scalded chimps – and the problem will only get worse!  If you’ve been thinking about refinancing your Florida home loan, the time is now.  If you already have a loan in system, please be sure to stay on the ball to keep your 30-day rate lock from expiring.

I hope you enjoyed this article, you can find more like it at my Florida Mortgage Blogger site. As your Florida Home Loans Specialist, I’m here to answer any questions you might have about the mortgage industry. If I can help you locate financing for your Florida home purchase or assist you with a refinance, please do not hesitate to contact me at 863-604-3019.