Sorry for the delay! I would say you could do that if you wanted to, but the change in your rate by floating vs. locking will probably never be more than a quarter; which dependent on your loan amount will matter less or more. It can be done, and may help, but what I would say is to float and just ask your originator to follow the bond market and advise you when mortgage backed securities are degrading. They can call you and say, hey it looks like rates are going to get worse. And then you can lock.

You can also request that your originator lock you with a “float down” option. This means that if the rate goes below your locked you can float down to the lower rate for free. Be sure to inquire about that option.

Morgan

What you need to get from your lender before you order the appraisal is something in writing that states that they will release the appraisal TO ANOTHER BANK should you choose to leave for ANY REASON. Then you want to communicate with the appriaser before they do the appraisal and make sure that they are OK with do that should your loan fall apart with the lender you are ordering the appraisal with.

Make sure they will release the appraisal to another lender though & that the appraiser is willing to do this. Appraisers aren’t supposed to do this but many will. There is a BIG difference between having the appraisal released to you and having it released to another lender.

Another lender can’t use the appraisal unless it has their name on it and the only way you can get this to happen is if the first lender and the appraiser both agree to let that happen.

another question I have is if you get an appraisal and pay for it and something comes up where you want to change lender, will you be able to use the appraisal you just got, or will the next lender require another one that you get to pay for all over again?

I would apply with two different companies for either a purchase or a refinance loan.

You may have to pay for an appraisal up front, but there are MANY companies that will lock your rate for you based off an estimated value. You don’t need the appraisal done to have your rate locked. Banks that tell you that want to get your commitment prior to locking so they know that there is a better chance that you’ll work with them. But no, you don’t need an appraisal done to lock an interest rate.

In regards to the credit report here is what I recommend. Go to a web site like http://www.myfico.com and order a copy of your credit report yourself. Then when you complete an application with a loan officer tell them you have your own recent (within 30 days) copy of your credit report. Fax or email it to them. Ask them to quote you a rate and program off of that report. If you decide to work with them further they will need to have their own copy – but you can do your shopping with your own report.

Also, you would not necessarily be liable for the cost of the report. Many companies, like mine, see credit as a cost of doing business and do not charge anyone for the cost of the credit report, whether they work with us or not.

Hope this helps!

Final question, if you complete an application, won’t each company order a credit report and wouldn’t you be responsible for this charge if you don’t go through with the loan?

thanks
Mike