What are the risks involved when not locking the rate quote?

My personal belief is that it is not a good idea to lock your interest rate until all documents are signed and everything your loan officer needs is turned in. Locks are only good for so many days and with lenders as backed up as they currently are wasting lock days waiting for initial documents could cost you in the long run.After signing disclosures your loan officer should advise you on how the market is currently reacting and suggest either locking or floating. Currently, since the Fed's announcement of buying $40 billion in mortgage backed securities mortgage rates have been dropping.

Signing initial disclosures will not bind you into any of the terms within. The disclosures merely allow the loan officer to begin processing the loan. You cannot be hurt be signing them. It is a very common policy not to lock a loan until documentation and disclosures are provided.

There is no obligation to you if you sign the disclosures.. But the disclosures are necessary for your lender to submit your loan to underwriting.. Because of the multitude of borrowers trying to refinance right now, every lender out there is 21 plus days in underwriting alone.. So expect a 2 month or longer closing.. That being said, most of the lenders doing HARP loans will not allow you to lock in the rate until the loan is out of underwriting, approved, and all conditions have been cleared.. Once he is allowed to lock in the rate, then it takes 10 minutes to do it.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

It is many lenders policy to not lock a rate untill they receive the signed application & disclosures back from you. Many lenders have what is known as loan pull through ratio's. Meaning the number of loans that are locked VS the number of loans that actually close. If this ratio falls to low the lender may get cut off. Another reason for not locking is that they may have quoted you on a 15 day lock but there current turn time exceeds the 15 day lock. They will wait till you are within 15 days of closing to lock. ENG Lending, A Division of Bank of England, always puts your best interest first. We would appreciate the opportunity to serve you. Please visit us at www.cincinnatimortgagerate.net. You will soon find that we are so much more than a Mortgage Banker; we are a company that is dedicated to empowering our clients and referral partners. Don't forget to visit our Facebook Fanpage at http://www.facebook.com/pages/ENG-Lending-Cincinnati/171183536269710?sk=wall Or Call Anytime 513-403-6260

The loan officer may not feel comfortable locking your interest rate until more steps have been taken. I personally will not lock a loan until I have reviewed all the documentation and the customer has given the signed disclosures back. Your biggest risk is that rates will go up.

Well... Rates could go up. Rates could go down, or rates could stay the same. In today's market, there is very little room for any rate improvement, and a lot of room for rates to go higher. I suggest locking as soon as possible. Many lenders do not let you lock until receipt of disclosures and or an appraisal. That in and of itself is meaningless.