Posted on: 10th Aug, 2010 02:22 am
We are in the process of purchasing a home and supposedly had the rate locked. However, the broker adamantly refuses to provide us with the rate lock commitment. As far as I see it, this indicates dishonesty on his part and without a commitment outlining the terms and conditions of the rate lock, it is as we don't really even have one. Does anyone have any suggestions? I am an advocate that we need a new broker. My partner insists on waiting things out a little longer and see if things improve. Our realtor, who recommending this clown, is busy twisting our arm to stay put and to trust him, even though he's proving to be untrustworthy.
If your interest rate was locked, he should have no problem providing you with a Rate Lock Confirmation. If it's early in the process, I might think about looking elsewhere. You're the one who's paying for this loan. If he's playing the market and loses, you pay for his mistake (or in this case dishonesty).
The first item that you should request from your lender is a Good Faith Estimate (GFE). As of January 2010, the GFE has become binding.
The GFE lists an interest rate for the loan offered. The “important dates†section on page 1 tells you how long the interest rate is good. If the rate expires, the interest rate, some of the loan origination charges and the monthly payment listed on the GFE can change until the interest rate is locked. If you lock your interest rate after you have received a GFE, the lender must issue you another GFE within 3 days of the interest rate lock reflecting the date the rate lock is good through.
The GFE lists an interest rate for the loan offered. The “important dates†section on page 1 tells you how long the interest rate is good. If the rate expires, the interest rate, some of the loan origination charges and the monthly payment listed on the GFE can change until the interest rate is locked. If you lock your interest rate after you have received a GFE, the lender must issue you another GFE within 3 days of the interest rate lock reflecting the date the rate lock is good through.
