| In a purchase money transaction, sometimes there can be delays which cause the rate lock to expire and an extension is required. It is important to be aware to the possible things can can eat up time. Inspections can cause work to be performed on the property prior to closing in a sale transaction. There could be required work being done for termintes. Or, there could be other issues. It is important that the mortgage professional understand all the contemplated work during a sale transaction to decide on the best lock term. Longer lock terms are more expensive than a short term lock. (30 days) As a borrwer, it is important to understand that mortgage brokers are approved with many wholesale lenders. If market conditions improve after the broker has already locked in your rate at a lender, it is possible for the broker to move the loan file to a different lender. This rarely happend however, as the market would have to move at least 1/4% to take advantage of the drop in rates. Normally during a 30 day escrow period, this much of a change does not occur unless the Federal Reverse has held a meeting and decided to adjust rates. If this occurs mortgage lenders may adjust their rates accordingly during your lock period.
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