As a lender, I can tell you that loan docs are technically good for the month in which they were drawn (December). However, most lenders will give anywhere from the first 5-7 days into the next month (Jan 5th -7th) to fund (depending on Lender). If you pass these amount of days, then yes they must be redrawn. This does not mean the lock expires rather than the lender must get the loan docs to reflect the current month's date. This can delay your loan further (depending on lender) as it can take anywhere from 2-5 days to get the docs redrawn, again depending on the lender. That also means the docs will need to go back to the seller-bank for re-signing which isn't going to bode well and can take an additional 2-4 days.
In short, it really isn't that big deal other than a delay resulting from re-drawing and re-signing the loan docs. Come to think of it, that may be a big deal but that came down to your current lender releasing loan docs in such short notice. If they would have gotten them out earlier, you wouldn't be dealing with such a crunch.
Well there is none.
The expiration normally refers to the number of days you from your lock date, not the number of days after you signed docs. You have to find out when you locked your loan and how long the lock was for.
1) Prior-to-doc (PTD) conditions are those that must be satisfied before the lenderâ€™s underwriting department will generate and send loan docs for you to sign at escrow. Since loan docs were generated, you satisfied any PTDs.
2) Prior-to-fund (PTF) conditions are those items that must be satisfied before the investor will â€œpush the buttonâ€ to send your new loan funds to escrow. You may want to ask what specific PTFs remain unsatisfied.
It is a bit odd that your loan docs, if actually generated on 12/24, would be expiring so soon. In any case, rather than an extension, you may need a loan doc redraw, which would require that you re-sign the new docs (there will probably be a fee associated with this as well).
There may be another element at work here. Loan docs can expire after being signed and before funding due to a PTD. A PTD condition that can cause a problem is the interest rate lock term, which varies between 15, 20, 30, 45, 60 days (longer locks are possible). If this lock expires before funding new loan docs will be required. Typically, you can avoid rate lock expiration by paying for a lock extension, which also avoids having to produce new docs and the payment of a â€œre-draw feeâ€. Fees for a re-lock are based on the duration of the extension and the lenderâ€™s individual fee structure.