A purchase transaction closing is scheduled for the 29th of the month, but the seller requests to delay until the 3rd of the next month to avoid capital gains tax implications. The borrower's rate lock expires on the 30th. What is the most likely outcome?
Correct Answer
C) The rate lock will expire and new terms must be negotiated
Rate locks have specific expiration dates. Unless the lender agrees to extend the rate lock (often for a fee), the original rate lock will expire on the 30th, requiring new rate terms to be negotiated for a closing on the 3rd.
Why This Is the Correct Answer
Rate locks have specific expiration dates. Unless the lender agrees to extend the rate lock (often for a fee), the original rate lock will expire on the 30th, requiring new rate terms to be negotiated for a closing on the 3rd.
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