What must be included in the lock-in agreement regarding the lender's obligations?

Including a provision for a good faith effort to process the application in a lock-in agreement is essential because it establishes the lender's commitment to act diligently and reasonably in processing the loan application. This assurance is important for the borrower, as it sets the expectation that the lender will take the necessary steps in a timely manner. The concept of good faith in the context of lending emphasizes integrity and fairness in the transaction, reinforcing the lender's obligation to make an earnest attempt to meet the agreed-upon terms.

On the other hand, guaranteeing loan approval is impractical in a lock-in agreement since many variables affect loan eligibility and underwriting processes. Stating an exact closing date might be challenging due to unforeseen circumstances that can arise during loan processing. Lastly, offering fixed interest rates for life is unrealistic as these rates are typically subject to market conditions and other factors, and such a commitment could impose undue risk on the lender. Thus, prioritizing a good faith effort aligns with industry standards and protects the interests of both parties involved.