Does It Cost Money To Extend Your Lock?

When you are in the process of getting a mortgage, at some point your loan officer will “lock” your loan. When your loan is locked, essentially what happens is that your loan officer has let the lender know that you have completed the initial paperwork for a loan and that you intend to close it within the lock time frame.

extend your lock

Each lender has different lock time frames – but typically they are in 10,15,30,45 or60 day increments.

What does it mean to extend a lock?

It means that for whatever reason, when your loan officer initially locked the rate, he needs longer to fund your loan.

Say for example that when your loan officer initially locked your loan, he locked it for 30 days, but now it has been 28 days and you are still 7 days away from your loan funding.

What happens is that your loan officer will contact the “lock desk” at the lender and extend your lock for as long as needed.

And the longer the lock is extended, the more money it costs – usually.

Does it cost money to extend a lock?

Yes and no.

Yes, it costs money, but under most circumstances that I have seen the loan officer just ends up “eating” the cost. Not always, but most of the time. I guess it only seems right – heck, the loan officer is the one who recommended how long to lock your loan in the first place.

So if your loan officer tells you that it will cost you money to extend your lock and it wasn’t because of anything you did – email him this article and have him call me for a ridicule session for wanting to charge you for his screw up.

Those calls are always fun.

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