Rate lock vs. closing

[coody]

I am told by a bank the interest will be locked for 30 days. Does it mean the closing cannot be scheduled more than 30 days, otherwise the interest rate may change? If so, how shall I do if the closing cannot be done within 30 days but the interest rate is locked by a lender for 30 days? Thank you for the answer.

[HomeGuru]

Originally Posted by coody

I am told by a bank the interest will be locked for 30 days. Does it mean the closing cannot be scheduled more than 30 days, otherwise the interest rate may change? If so, how shall I do if the closing cannot be done within 30 days but the interest rate is locked by a lender for 30 days? Thank you for the answer.

**A: see if the lender cna extend the lock and if so the cost. Some lenders charge a flat fee others say a quarter point.

[Samm1970]

I am told by a bank the interest will be locked for 30 days. Does it mean the closing cannot be scheduled more than 30 days, otherwise the interest rate may change? If so, how shall I do if the closing cannot be done within 30 days but the interest rate is locked by a lender for 30 days? Thank you for the answer.

I would just add; Don't pay the extentsion fee now. I'd wait until the 30th day. If your loan hasn't closed by the 30th, then request the extension. Just find out from the lender if they will extend your rate if needed and how much it would cost. Also, if the lender locked you for 30 days, they should be able to get you closed within that time period. If they are unable to get you closed because of their own error, then make sure they will pay the extension fee not you. Make sure you get everything they ask for to them immediately so they can't blame you for any delays. Make sure you make regular calls to them for updates - at least weekly if not more. Then they know you're engaged in the transaction.