Appraisal delays past your rate lock are common. You may need an extension or risk losing your rate. Communicate proactively with your lender.
If the appraisal report does not arrive before your lock expires, your lender may offer a one-time extension or let the lock expire, requiring you to lock at the current market rate.
Appraisal Delays and Rate Locks
Appraisals are scheduled through third-party appraisal management companies, and delays can happen due to appraiser availability, property access issues, or high market volume. When the appraisal is delayed past your rate lock expiration, you need to act quickly to protect your rate. As a dual-licensed loan officer and realtor, I help San Antonio and Texas Hill Country homebuyers navigate these situations by communicating with the lender and appraisal company to minimize disruptions to your closing timeline.
Rate Lock Extensions
Most lenders offer rate lock extensions, typically for a fee. The cost depends on how long you need the extension and current market conditions. Some lenders offer a one-time free extension of a few days, while others charge a fraction of a point per week. Contact your loan officer immediately when you know the appraisal will be delayed to discuss extension options and costs.
Cost of Losing Your Rate Lock
If your rate lock expires and you cannot get an extension, you will need to lock a new rate at current market pricing. If rates have risen since your original lock, your monthly payment could increase significantly. In a rising rate environment, the cost of a rate lock extension is often far less than the cost of locking a higher rate. Always weigh the extension fee against the potential payment increase.
How to Prevent Appraisal Delays
While you cannot control the appraisal company's schedule, you can help prevent delays by ordering the appraisal as soon as the purchase contract is signed, providing all required property access upfront, and ensuring the seller is prepared to accommodate the appraiser's visit. Choosing a lender with strong appraisal management relationships can also help keep your timeline on track.
Communicating with Your Lender
Keep your lender informed every step of the way. If the appraisal is scheduled but delayed, let your loan officer know immediately so they can request an extension before the lock expires. Many lenders can extend a lock retroactively if notified promptly. Silence on your end may result in the lock expiring with no recourse.
