Transfer lock to new property? Some lenders allow transferring a rate lock from one property to another. Check your lender's transfer policy and any applicable time limits before assuming it is allowed.
Transferring Your Rate Lock
A rate lock transfer allows you to move your locked interest rate from one property address to another. This can happen when the original deal falls through and you make an offer on a different home. Not all lenders permit transfers, so check with your loan officer as soon as you know your first deal will not close.
The new property must typically meet the same loan criteria as the original property including loan type, occupancy, and property condition. If the new property has a different loan-to-value ratio or requires different documentation, the transfer may not be approved.
Conditions and Time Limits
Lenders that allow rate lock transfers often impose time limits. You may need to identify the replacement property within a certain number of days, typically 15 to 30. The original lock expiration date usually does not change, so the clock continues running.
Alternatives If Transfer Is Not Allowed
If your lender does not permit a rate lock transfer, you may have to let the original lock expire and relock at current market rates. Depending on market movement this could result in a higher or lower rate. Ask about extension or float-down options as alternatives.
