Seven Questions to Ask any Loan Officer

#7 If my closing is delayed and my rate needs to be extended, who will pay for the lock extension fee?

Mortgage Delays Are Common so be prepared and know in advance what they will cost and who should pay the extension fees.

Mortgage Delays Are Common so be prepared and know in advance what they will cost and who should pay the extension fees.

Lenders charge more for longer rate lock extensions because a dollar earned yesterday is worth more than a dollar earned tomorrow. Therefore if there have been delays in processing your application you may have to extend your rate lock.

It’s important know under what circumstances you will be required to pay for the extension and under what conditions you should expect your lender to pay for the extension. This is important to note because it could add hundreds if not thousands of dollars to your down payment and closing costs.