How to Get a Real Rate Lock on a DSCR Loan?

Question

I"ve been shopping a DSCR and hearing odd things about rate locks.

So far I've been told things such as  I can lock "when I"m close to closing" or "after the appraisal is completed". The appraisal is supposed to be the slowest part of the process.

I'm sure rates will not be down from those quoted up-front. Years ago I saw a line item on one of my settlement statements for a Yield Spread Premium, which I don't believe are legal anymore. There wasn't much question what had happned there.

How can I get the actual rate I'm quoted at the time of commiting to the loan?

Thank you BP nation.

Matt Cartwright · Answer

Hi @Burt L. would be happy to connect on this - we lock our rates for 60 days at the very start of the process so there is no second guessing or re-trading at the end of the process.

Zach Wain · Answer

@Burt L. We can lock our DSCR loans, but every lender is going to be a little different right now.  If you need anything, let me know.

Jonathan Taylor · Answer

@Burt L. I support @Stephanie P. 's statement. Most of my lenders don't lock until CTC with a few locking after conditional loan approval. YSP is fully legal and compliant with all regulations.

Dylan M. Davis · Answer

The best thing to do is ask the lender about their specific process. I'm always transparent with my clients about rate locks, credit checks, etc. because I know the timing of such things is important! For many lenders this depends on the property and borrower... That's why it's important In my opinion to not jump from one funding source to the next because the process may be quite different at each..

Eliott Elias · Answer

I wouldn't lock in a rate right now. Rates are cooling off and expected to drop

Eric Goldman · Answer

usually rate is locked when the full package is submitted. some lenders are locking at the start... but generally not the best rates...

Erik Estrada · Answer

It depends on the lender. Some lock it when you order the appraisal, others do it when you are under contract, and most do it once you have the CTC.

Richard Loniewski · Answer

With today's market everything is crazy and each lender had different rate lock periods (some don't have any) that's a question to ask a lender, the only thing you can do is move as fast as possible. I would get title ordered ASAP the pay a few bucks extra for a rush on the appraisal. Get all other docs into lender. Before everything went crazy we had 30 day lock from accepting terms, no more!

Jared Rine · Answer

@Burt L...I responded to another of your posting of similar thread, but you should be working with a lender that can lock in rate at submission on 30, if not 45 days, and be able to easily close in that timeframe.  All the lenders I work with allow for locking at loan registration, so my clients don't lose ground on pricing.

How to Get a Real Rate Lock on a DSCR Loan?

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