What do you mean the rate was not locked??

By
Mortgage and Lending with Movement Mortgage, LLC NMLS 188385 BRE# 188385

This may seem like common sense but I wanted to share this story as a reminder to watch out for this with your clients.

 

A Realtor contacted me in my office on the 6th of December about what I could offer their client on a deal they just put in to escrow.  The Realtor told me I was up against another lender and to see what I could do to get the best deal.  I gave her my quote and at the end of the day on Friday they told me I had the deal and to move forward with the client.  I worked with the client over the weekend to get their loan submitted.  On Tuesday the 10th I had the deal approved with only two buyer conditions.  Next step was to get the appraisal ordered and close by the 20th so the client could move in over Christmas break.

The afternoon of the 10th, the Realtor called me and told me that the other lender had informed them they could offer the same rate AND a large lender credit.  The Realtor told me that every dollar counted and that they buyer wanted to go that route.  I told them that what they were offering was well below market.  I told the Realtor that I will keep my approved, locked deal open in case something happens.

Fast forward to Saturday, December 21st and I get a text from the Realtor.  The other lender screwed up and never locked the rate.  Can you still do the deal?  Yes I can.  I worked with the borrower that weekend to get the remaining conditions in and order a new appraisal.  We closed today on January 2nd, two days before contract close.

Always make sure your client gets a "rate lock confirmation".  This is a separate form from the GFE that guarantees the interest rate and fees that your client is paying.  

Happy New Years and have a prosperous 2014!

 

 

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