“What can a borrower do to prevent lock failure?”
A lock failure occurs when a lender refuses to honor a mortgage price that a borrower had believed was guaranteed. In two previous columns, I discussed some of the reasons why locks fail, and why there is seldom any recourse for the disappointed borrower. But lock failures can usually be prevented.
The key is in the selection of the loan provider. If you are dealing directly with a lender, the greatest risk is one who entered the market recently to take advantage of the refinancing boom. However, longevity is no guarantee that locks will be honored in a rising rate market.
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