|
 |
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In most cases, the terms you are quoted when you shop among lenders only represent the terms available to borrowers settling their loan agreement at the time of the quote. The quoted terms may not be the terms available to you at settlement weeks or even months later; therefore, you could not rely on the terms quoted to you when shopping for a loan useless a lender is willing to offer a lock-in. On our site we fully disclose the lock-in period when you search for a particular rate. You may select between 30, 45 and 60 lock periods.
A lock-in, also called a rate-lock or rate commitment, is a lender's promise to hold a certain interest rate and points for you, usually for a specified period of time, while your loan application is processed. (Points are additional charges imposed by the lender that are usually pre-paid by the consumer at settlement but can sometimes be financed by adding them to the mortgage amount. One point equals 1 percent of the loan amount.) We allow you to lock your loan at application or at a later date if you so choose. If you lock at application, you will need to make sure you select a period of time long enough to get cover your closing date on your purchase contract or time to process and underwrite your loan if refinancing.
A lock-in that is given when you apply for a loan may be useful because it's likely to take your us several weeks to prepare, document, and evaluate your loan application. During that time, the cost of your mortgage may change. But if your interest rate and points are locked in, you should be protected against increases while your application is processed. This protection could affect whether you can afford the mortgage. However, a locked-in rate will also prevent you from taking advantage of price decreases, as we do not renegociate locks. It is important to recognize that a lock-in is not the same as a loan commitment, although some loan commitments may contain a lock-in. A loan commitment is the lender's promise to make you a loan in a specific amount at some future time.
Absolutely!! Once we have recieved and processed your lock request, you will recieve notification by email. This is your written confirmation that your rate and points have been locked. If you do not receive your confirmation email by the first buiness day following your request, please Contact Us. Some companies may try to offer you a verbal lock-in agreement. This should be unacceptable to you as everything should be in writing.
Please note that your loan is not locked until you receive written confirmation from us. We will not process your lock request without the completed online loan application. Upon the receipt of the online application and lock request we will process your loan through one of the various automated underwriting engines. If you loan is approved, we will process your lock. If your loan is not approved based on the the information provided, you will be directed to contact one of our consultants. Therefore, it is important that you complete your loan application as quickly and as accurately as possible.
Because our goal is to close your loan as quickly and efficiently as possible, we collect a fee of $300 from you at the time you wish to lock you loan. The purpose of this fee is to cover all or a portion of the cost of your appraisal, a service provided by an independent third party provider. We generally order the appriasal on the same day the lock-in is processed. If you withdraw your loan, you will be refunded any funds remaining, less the cost of your credit report/automated underwriting ($53 at this time), and any funds owed to the appraiser. If your loan is denied prior to the lock-in confirmation, you will be refunded all funds, less the cost of the credit report.
We currently offer 30, 45 and 60 day lock periods. You will select the lock period at the time you are searching for rates. As you will notice, longer lock periods have a slightly higher cost. This is to help offset the risk that we bear in holding a certain rate for you for an extened period of time.
You should choose a lock-in period that will be long enough to allow for settlement, and any other contingencies imposed by the us, before the lock-in expires. Before deciding on the length of the lock-in, you should take into account any factors that might delay your settlement. These may include delays that you can anticipate, such as providing supporting documents about your financial condition and, in case you are purchasing a new house, unanticipated construction delays.
If you don't settle within the lock-in period, you might lose the interest rate and the number of points you had locked-in. This could happen if there are delays in processing whether they are caused by you or others involved in the settlement process. For example, your loan approval could be delayed if we have to wait for any documents from you or from others such as employers, appraisers, termite inspectors, builders, and individuals selling the home. If your lock-in expires, we will offer the loan based on the higher of the prevailing interest rate and points, or your locked in rate. This is know as "worst case pricing". If you are concerned that your lock may expire prior to settlement, you may be able to extend your lock. You will need to contact us prior to your lock expiration to entend your lock. Generally there will be a fee of 1/8% cost to the points for a 10 day extention. You must contact us prior to the expiration of your lock to inquire about an extention. If your lock expires, you will be subject to "worst case pricing".
There are certain things you can do to speed up your approval and closing. One of the most important is to try and be as accurate as possible on your loan application. The will help us not only approve your loan, but also help us to indentify what other douments we need from you.
Much of the information required by us can be faxed to us when you apply for a loan. This may help to get your application moving more quickly through the process. When you apply for your loan, be sure to have the following information handy.
Be sure to respond promptly to our request for information while your loan is being processed. Our processing department will contact you if we are having trouble with any documentation.
Rate locks are not transferrable to a different property address. If the property address changes on a locked loan, the lock will be cancelled and a new lock will be required at the current market rates.
You will receive the rate and point combination from the day you locked-in or the day you switched programs ("Worst Case Pricing" senario), which ever is higher. In addition, you will be charged an additional .125 of a point. Therefore, it is important that you carefully consider the different programs and rates before locking.
If you withdraw your application, you must wait 60 days before you can re-apply at the current market rates.
State consumer protection officers, banking authorities, and offices of the attorney general can be contacted regarding complaints against many lenders doing business in the state. (Some states have enacted legislation to specifically address complaints about mortgage lock-ins.)
In addition, some lenders are directly supervised by federal regulatory agencies, as shown in the list that follows:
Mortgage Companies
Federally Insured Savings and Loan Institutions an Federally Chartered Savings Banks
State Member Banks of the Federal Reserve System
National Banks
Federally Insured Non-Member State-Chartered Banks and Savings Banks
Federal Credit Unions
If you have questions, please send email to Customer Service.
 Get a customized rate quote.  Tracking loan rates? Join RateWatch. It's easy.   3 Ways to Contact Us: o Call: 888-555-1212 o Email: Customer Service o Chat: Online, in real-time (Coming Soon) o Request a Call!
|
| Copyright 2006 All rights reserved. 2856 E. Kemper Rd. Cincinnati OH 45241 Tel: 888-317-6423, 513-842-0080 Fax: 513-842-0079 |
|
In accordance with Section 326 of the USA PATRIOT Act of 2000, we are required to obtain a copy of the documents used in identifying our new account customers. This notice is being provided to you for adequate notice given under this act. |
