How Do I Lock in a Mortgage Loan Rate?
All homeowners should lock in their rate for 45 to 60 days at application to avoid unpleasant surprises at closings that cost them money for up to 30 years.
Locking in mortgage interest rates can ensure a cost-effective and relatively stress-free mortgage application process. Market volatility and strict mortgage approval rules make this suggestion an imperative for prospective homeowners.
Lenders who have survived the mortgage and real estate crash have adopted much more strict approval standards. Unlike normal market rules, should your interest rate increase prior to closing, instead of possibly adjusting the rate upward, you can lose your approval–at any interest rate.
Mortgage underwriting regulations–particularly required monthly income and credit score minimums–have become so tight that many formerly qualified borrowers can easily be “shut out” of the loan process. Locking your mortgage interest rate at application has morphed beyond important into the “critical” area.
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