rate lock Q & A

     

What's a Rate Lock?

An interest rate lock occurs when a lender, such as Home Finance of America, agrees to guarantee important terms of a new loan for a period of time. The terms and conditions are specified in an interest rate lock agreement. Terms include the interest rate, lender's origination charges, any applicable discount points and the interest rate lock period.

How do I Lock-In?

You may lock-in with Home Finance of America as soon as a completed mortgage application (1003) of yours is in our possession. The application must meet our lending guidelines. You may apply with a licensed loan originator over the phone at almost any time. Call 1(800)358-5626. Prior to applying a loan originator will assist you in selecting the mortgage program and interest rate that's best for you.

How does HFA guarantee my Loan Terms?

Unlike many lenders, we can email your interest rate lock agreement almost immediately after you apply. No waiting and no surprises!

Home Finance of America is a direct lender, just like a bank. We will fund your mortgage with our own money and are not middleman like a mortgage broker. Unlike other direct lenders, we collect your supporting documentation after you lock your rate. We can guarantee the mortgage terms you discuss with a loan originator immediately.

How long will my Rate be Locked?

Typically, a Rate Lock Agreement with Home Finance of America is valid for 30 calendar days. If you or your Loan Originator feels that your Rate Lock Agreement should be valid for a period of time greater than 30 days, we can certainly accommodate your needs.

Will I owe fees to Lock-In?

After you Lock-In, your originator will collect a specified amount by credit card to pay an independent third party to conduct a complete real estate appraisal of the subject property that's being put up as collateral for your new mortgage. An additional independent third party fee will be collected to allow a credit provider to provide us with a current credit report.

What if my Lock Agreement expires before I close?

If external market conditions improve or stay the same your Rate Lock expiration date may be extended for an additional 7 days at your mortgage original terms.

If external market conditions have worsened you will be re-locked into the current market terms (including rates, fees, and points) that we are offering at the moment.

What if I change my mind after I Lock-In?

We understand people change their mind. If you want to change any of your loan terms after you Lock-In, no problem. Let your Loan Originator know of the change at least 7 days before you intend to close and we'll do our best to accommodate you.

If you decide you don't want to proceed with your mortgage we will simply send you a withdraw from loan letter. Your Credit Score will not be negatively impacted. Any third party fees we collected by credit card to evaluate your mortgage transaction will be refunded if those third party services have not been performed.

At Home Finance of America our goal is to offer you low mortgage rates and the best service available. Call us toll free at 800-358-LOAN (5626). Or, Apply Online using our secure server today. It only takes minutes and a Mortgage Professional is available to help you 7 days a week!