Origination ActivitiesQuestion 234 of 400
A borrower requests a rate lock on Tuesday and the loan officer confirms a 45-day lock in writing. What does this lock agreement primarily guarantee?
a.That the appraisal will support the purchase price
b.That the loan will be approved by underwriting
c.That closing costs will not increase for any reason
d.That the quoted interest rate and points are held for a set period if the loan closes within that window
Explanation
A rate lock guarantees the interest rate and points for a specified period, provided the loan closes within that window and terms do not change. It does not guarantee underwriting approval, appraised value, or that all closing costs remain fixed.
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