benjie k asked:
the mortage company ask for a lock-in payment for closing ($55) and $350 (i forgot what it is for), but i still pay. the mortage ask for our credit report, paystub, income and many other documents and we provied them already. the closing date was supposed to be jan 15-30 of this year, but until now the mortage company is still asking for many documents that is the same they ask last Nov. 6 the day we lock-in. please explain me a little for any one know about this. thanks in advace.
Erin
the mortage company ask for a lock-in payment for closing ($55) and $350 (i forgot what it is for), but i still pay. the mortage ask for our credit report, paystub, income and many other documents and we provied them already. the closing date was supposed to be jan 15-30 of this year, but until now the mortage company is still asking for many documents that is the same they ask last Nov. 6 the day we lock-in. please explain me a little for any one know about this. thanks in advace.
Erin
Cody
It doesn’t matter whether you are purchasing or refinancing, the mortgage company can ask for whatever they choose right up until the write the big check. The $350 is probably for appraisal. If you get fed up the only choice you have to to switch lenders (or threaten to). As far as the lock-in, take the time to read what you signed and you will know what you have.
Dustin
Lock-in usually refers to the interest rate. Sometimes they only lock it for 30 days sometimes for 60. Sometimes there are fees associated with longer locks. You yourself are Not locked into signing for the mortgage until you close. They too are not locked in until they have the final approval and the ‘clear to close’.
There are pre-approvals from the mortgage company which are usually to take the application then check your credit. Then the title company makes sure that there are no liens on the house or you. During this time mortgage company verifies what you have stated on your application. The underwriters take all of the information and determines whether or not you would be a good risk for them. This is usually the final process and if you would be approved. When it has been a long time as it has in your case the mortgage company just needs updated information, like pay stubs, to verify that you still work at the same place. The underwriter probably asked them for the information. It is called a stip. Which means approval with several stipulations that the mortgage company must provide, like your updated paystub. During this time you can always go to someone else. It sounds to me like you are very close to closing they are just tying up loose ends. The faster that you get them the information the sooner you will close.
Matthew
You’re not approved until the lender says there’s a clear to close, which means underwriting doesn’t need any further documentation. The lock-in was just for locking in your interest rate (you may want to check to see how long the lock-in was good for…usually 21-30 days.)
The $350 was probably for the appraisal.
Keep providing the docs your lender asks for and find out what the hold-up is. The way your loan was originally set up may not have worked out, so your banker had to re-structure the deal so it would still get approved. This is pretty common, but your banker should have told you.