How many days can a borrower extend a lock-in agreement if a commitment is not closed by the specified date?

How many days can a borrower extend a lock-in agreement if a commitment is not closed by the specified date?

• A. 7 Days
• B. 10 Days
• C. 14 Days
• D. 21 Days

Answer: (C)

The borrower can extend a lock-in agreement for a period of 14 days if the commitment is not closed by the specified date. This provision is designed to give the borrower additional time to finalize their mortgage commitment without the risk of losing their locked interest rate. The 14-day extension period reflects a reasonable balance between providing borrowers with the flexibility they need while also ensuring that lenders can manage their pricing and risk effectively. Understanding this timeframe is important for borrowers as it helps them anticipate potential delays in the mortgage process and encourages proactive communication with their lenders. This extended period allows for unforeseen circumstances, such as issues in documentation or appraisal delays, which can sometimes occur before closing. Knowing this policy also empowers borrowers to make informed decisions about their mortgage commitments and financing options.

The borrower can extend a lock-in agreement for a period of 14 days if the commitment is not closed by the specified date. This provision is designed to give the borrower additional time to finalize their mortgage commitment without the risk of losing their locked interest rate. The 14-day extension period reflects a reasonable balance between providing borrowers with the flexibility they need while also ensuring that lenders can manage their pricing and risk effectively.

Understanding this timeframe is important for borrowers as it helps them anticipate potential delays in the mortgage process and encourages proactive communication with their lenders. This extended period allows for unforeseen circumstances, such as issues in documentation or appraisal delays, which can sometimes occur before closing. Knowing this policy also empowers borrowers to make informed decisions about their mortgage commitments and financing options.