Timing is key when locking home loan

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Editor's note: This is the second of a two-part series. Read Part 1. The first article in this series noted that borrowers shopping for a mortgage are obliged to select a lender before the price is "locked." As a result, borrowers in shopping mode are vulnerable to lowballing -- the practice of quoting a price below the market as a way of influencing the shopper's selection. Borrowers who have already selected a lender but have not yet been locked are vulnerable to an overcharge at lock, explained to them as being caused by "changes in the market price." And borrowers who have been locked may overpay if the property appraisal comes in higher than the valuation used to price the loan, and the lender conveniently ignores it. Importance of posted prices These lock scams all involve a deviation between a lender's posted price and the price quoted to or charged the borrower. The posted prices are those the lender will accept, and which are delivered to its...