Quote:
Originally Posted by aggieAXO
I was able to lock into an interest rate before I bought my house. This was in 2003 so maybe things have changed?
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Yes,
everything has changed. We use to have a "lock and shop" program, which allowed you to lock in your rate without a property. However, the broker (wholesalers don't deal directly with the borrowers) would be penalized if they didn't produce a loan within 90 days. Typically, these rates were not great since the hedge on a 90-day lock is much riskier than a 30-day lock.
We discontinued the program before the market went south because pull-through was so low and we were losing money on the hedge. Often, borrowers just can't find a house (or make up their minds) in a particular timeframe.
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