Ask Phyllis: a blog series of frequently asked real estate questions.

Locking in an interest rate on a probate sale

Dear Phyllis,

My son recently found a home he loved, but it was a probate sale requiring court confirmation. He had to wait a little over four weeks for the court confirmation hearing, and no one outbid him. He used the lender recommended by his Realtor, and the lender locked his interest rate for 30 days. Unfortunately, the rate expired before closing, and he had to relock at a higher rate.
The lender explained that they couldn’t order loan documents until they received the final recorded court order. Since I see you have experience with probate sales, I wanted to ask: what is the typical procedure or best practice for locking in an interest rate on a probate sale?

Thank you for your time and insight.

Claudia

Dear Claudia

When a probate sale requires court confirmation, the process doesn’t end with the judge’s approval. After the hearing, the court must issue and record the formal confirmation order. This step usually takes three to six weeks, with four weeks being typical. Only after the recorded order is available can the title company and lender move forward with the loan documents and closing.

An experienced lender should know this timeline. Court-confirmed probate sales are common in California. The lender should wait to lock the rate until the order is recorded, or choose a longer lock period. Locking too early risks the rate expiring before closing, which can lead to higher rates or extra fees.

In this case, it seems the lender should have planned for the probate timeline and structured the rate lock to protect the buyer.