If you’re in the midst of the home-buying process and want to secure your rate, you may be able to do so with a mortgage rate lock.
A small change in rates can lead to thousands in savings or additional costs over the life of a mortgage.
Locking in your mortgage rate safeguards you from market fluctuations while the lender underwrites and processes your loan.
Depending on the lender, you may have the option to lock in the rate any time between pre-approval and when underwriting begins.
Before pre-approval and locking in, it’s recommended to get multiple offers when shopping for a mortgage to find a competitive rate.
It’s worth noting that borrowers aren’t committed to the lender until closing, so reapplying elsewhere is an option if rates change considerably.
It’s important to choose a lock period that gives the lender ample time to process the loan to avoid extra fees or a potentially higher rate.
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