Subject: Re: Obligated to Lender
Date: Wed, 23 Jun 2004 20:34:42 -0500
From: "John A. Weeks III" 
Newsgroups: misc.invest.real-estate

In article <9fa44b8b.0406231428.64eee21e@posting.google.com>, Binder
 wrote:

> I have a mortgage on my existing home.
> I will be buying a home from a builder, set to close in 30 days.
> I have locked a rate for my new home with my existing mortgage lender.
> They charged me one-eigth point to lock at 60 days.
> I have not signed any of their paperwork for the new loan.
> 
> Am I obligated to use them as a mortgage company on the new loan since I
> locked
> a rate with them?

Generally, you do not sign the loan paperwork until closing.
The exception is the application form.

In general, you are not obligated to take the loan if one is
offered to you.  However, signing the rate lock might be an
obligation.  You need to read the contract on what you signed,
or retain a real estate attorney to figure it out.

I have seen folks strong-arm lenders right before closing when
they have locked, and rates have gone down.  It works best if
you have a back-up lender ready to go.  You are probably going
to want some representation on this since if you make an error,
it can get real expensive real quick.

-john-

-- 
====================================================================
John A. Weeks III            952-432-2708         john@johnweeks.com
Newave Communications                       http://www.johnweeks.com
====================================================================