If I Cancelled on a Locked Mortgage Rate Can I Reapply?
Most lenders require the homeowner to lock the loan's interest rate prior to closing the mortgage. Mortgage rate locks come in many different lengths. Shorter rate locks last only seven to 15 days. Longer rate locks can extend up to six months or longer. Sometimes rate locks expire, leaving the borrower without a locked loan and often wondering what to do next. Sometimes rates expire because the borrower allows them to expire, or sometimes they expire because the financing process took longer than expected. Either way the homeowner has options, and reapplying for the mortgage is only one.
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Relock the Loan
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Just because the lock expires does not mean the application expired. Lenders often keep applications active even though the rate lock expired. Lenders spend a lot of time and energy on the process of approving a mortgage and will not cancel the application just because the rate lock expired. The lender may relock the loan to the rates currently offered. Some lenders require that a homeowner accept worst-case pricing,
Reapply
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If your loan officer works for a mortgage broker, you may have the option of applying with a different lender without changing loan officers. Mortgage brokers establish relationships with multiple lenders and may resubmit your application to a different lender quickly. Because each lender provides its own rates, it will not know, or probably care, that your lock with another lender expired.
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Apply with Another Lender
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Homeowners and homebuyers may contact additional lenders for quotes and apply with a separate company. The new lender may lock the loan without any penalty. It is a new loan with the new company, regardless of how many other rate locks expired. Homeowners are not bound to stay with one company simply because they locked a rate with that company. Homeowners should obtain several quotes whenever they choose to work with a new lender.
Call Your Current Lender
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Your current lender values your business and may offer an interest rate better than any new company can. Your current lender knows your financial situation, has experience with you as a client and may offer a superior loan program simply because of your established relationship. Explain to your current mortgage lender your desire for a new mortgage and your financing goals. Make it clear that you intend to use a company that will meet your goals, but that you value your relationship with his company. Offering that lender an opportunity to serve your new needs may be rewarded with lower interest rates and closing costs.
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