What happens if my lock expires before my loan is complete?
When you begin the mortgage approval process, your rate can be “locked” for 30 days (or up to 75 days, depending on your loan type), allowing your underwriting process to run its course without subjecting you to rate increases between application and closing. If your loan doesn’t close within the lock period, it is possible to extend your rate lock—but there is a cost associated with doing so. Who pays the extension fee depends on who was primarily responsible for the delay in closing:
If the delay was due to complications on our end, Better Mortgage will pay 100% of the fee.
If the delay was due to third-party complications (appraisal, title, etc.) we’ll pay 50% and you’ll be responsible for the other 50%.
If the delay was due to complications on your end (unresponsiveness, missing documents, etc.), you’ll be responsible for the full amount.
What can I do to help my loan close within the lock period?
Loan underwriting is a highly collaborative process between lender and borrower, so the best thing you can do to ensure speedy closing is stay up to date on your task list in our online borrower portal. This is your one easy central hub for everything happening with your loan, including an up-to-date list of things Better Mortgage needs from you at any given point in the process. These typically include documents we need you to upload, third-party steps you need to arrange (like inspection, appraisal, title etc.), or questions we need you to answer. Checking in on your list daily is the best way to keep things moving.
We also recommend taking a proactive approach with third parties in the process. Follow up soon and often with service providers who are taking care of things like your appraisal, inspection, title, insurance, etc. The more quickly those items get checked off the list, the more quickly your loan can close.
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