Keystone Funding’s (“Keystone”) Lock and Shop Program (the “Program”) allows a consumer to lock in an interest rate prior to locating a home to purchase. The Program is available only on first lien purchase transactions on loan products that conform to agency guidelines, FHA loans, and VA loans. The Program is not available on second homes, investment properties, construction/renovation loans, non-Qualified Mortgages (non-QM) or loans brokered by Keystone. The Program is available on fixed rate loan products with loan terms of up to 30 years. Lock-In Agreements under the Program are valid for up to 90 days. There is no fee, and no preapproval is required to lock a loan under this Program.
A Lock-In Agreement will terminate if (i) the loan does not close and fund by the Lock Expiration Date, (ii) if a property is not identified by applicant and a Contract of Sale for the property is not submitted to Keystone within 30 calendar days of the Lock-In Agreement, (iii) if the application is withdrawn by applicant after submission, (iv) if the application is denied by Keystone; or (v) unforeseen circumstances arise which make it unreasonable, in Keystone’s sole judgment, to fulfill the obligations set forth in the Interest Lock-In Agreement such as declaration of war, epidemic, natural disaster, catastrophic event or other event or circumstances beyond Keystone’s control.
The Program may be amended or terminated at any time by Keystone. Lock-In Agreements under the Program are not transferrable or assignable. A Lock-In Agreement is not a mortgage loan approval nor a commitment to lend and is subject to the applicant satisfying all underwriting guidelines and loan approval conditions, including identifying a property that is acceptable collateral to Keystone and satisfying all appraisal, insurance, and title requirements.
Should the Lock-In Agreement expire, and applicant wish to continue to proceed with a loan application with Keystone, applicant may re-lock the loan in accordance with Keystone standard lock-in procedures except that applicant may not receive pricing which is more advantageous to the applicant then that reflected on the Lock-In Agreement. In such event, applicant will also be charged a relock fee equal to the loan amount multiplied by 0.125%