Each state has different wording on the form, but it all comes down to disclosing the terms and conditions of the lock. The form will spell out the loan program, loan amount, loan type, interest rate, origination fee, number of lock days and lock expiration. Some even charge an up front non-refundable fee.

Closing on time means that the lender must disburse the funds by the expiration date. But what happens if the lender does not close on time? The lock agreement should clearly state what would happen. The loan will probably be locked at the higher of the previous lock price or current pricing. In rare cases the loan program could be discontinued altogether.

Make your application journey a happy one. Discuss with the loan officer up front if the lock days are enough to meet the closing target date. Many loans require an appraisal. This is a key area and can be a time consuming part of the process. If the sales or refinance market is hot in your area it could take longer than normal to complete the appraisal. Be sure and cover estimated appraisal turnaround time with the loan officer during application.

During the loan process be sure and return any documentation quickly to the lender when asked. Be available to sign escrow papers in a timely manner. When the loan is funded, and you get the keys, it’s a great feeling to know you closed your loan exactly as you hoped.

Bill Wehr has been in home loan origination for over 25 years. He is the owner of Great Pacific Northwest Mortgage http://www.billwehr.com, a residential mortgage company serving Oregon and Washington.