I read here that the rate locks the day we submit the signed and dated purchase contract. My offer was accepted on 02/18/2018 and it was sent in on 02/19/2018.
I’m told that because the it wasn’t entered in the system I can’t lock the rate of 4.125% on 02/19 and would need to take the higher rate of 4.25% which was the rate on 02.20.. I understand Monday (02/19) was a holiday, but on the NACA website it stated the rate was 4.125%.
So am I to understand we can only lock rates on business days?
Long story short, a submission of any sort isn’t complete until it has been received. We have no way of knowing that a P&S has been submitted until we see it, so we can only lock in the date on the date we review the document and enter it in the system. In 99% of cases it is sent, received and entered into the system same day. In this case though, the holiday caused us to not see it until Tuesday.
Considering that the increase was almost certainly due to weekend market activity, if Monday had been a normal business day the rate would have probably gone up then instead of Tuesday. As such, you probably would have gotten the 4.25% rate anyway. And since the rate changes automatically parallel to market changes, there is no way to retroactively change it.
I’m sorry about the bad timing, but you’re still at a below-market rate, and are safe from any further increases from this point forward.
The rate posted on the website is more an idea of the applicable rate than the actual one. Often the rate is lower than that posted and there is no indication that the rate is confirmed or updated on a daily basis.
In terms of a rate lock, during business days is a reasonable assumption.
Just to add a point of clarification to what nacaplease wrote, sometimes the rates from either BOA or Citi may vary by a fraction of a percent from each other. Additionally, while it is VERY rare, the rate can change during the course of a day, and sometimes even multiple times in one day.
NACA automatically posts the higher of the two ACTUAL rates on our website. Therefore, while most of the time you will get the posted rate, we can on occasion give the member a pleasant surprise.