What's the point of a Rate Lock...
A few weeks ago I started shopping around for a bank that would do a cash out refi with a low rate. After deciding to go with one of them, and rated were very low, I wanted to lock my rate in. First it took them a week to get back to me after filling out the initial application. I thought, fine maybe the loan officer was very busy, but then the rate went up a little more. The rate didn't go up too much higher, but none the less a little disappointing. I still wanted to go with this bank since the rate was still very good. I locked it in, got my lock in rate sheet and thought I was good to go. The loan officer even emailed me the next day saying how it was good that I locked it in when I did since the rate went up yet again. I was so relieved.
Anyways, a week later I meet with the loan officer and he informs me that they will not be able to accept the lock in rate until I get an appraisal. I expressed my discontent and asked how was this not know before and that I had already given them a check for the appraisal that says it's non-refundable. He said he would get back to me after he spoke to underwriting and would try to argue my point. Another week goes by (keep in mind I keep calling and emailing to get answers with no replies) and then he informs me that the rate will not be accepted as locked in and that they will give my check back.
Need less to say I am very upset. I feel that they change the rules for different situations, rules about things that should be laid out in plain English like a rate lock. How could they not have know from the beginning that the rate would not be able to be locked in? The thing I hate the most is that they wasted my time and cost me money. Thanks for listening to my venting.