Once you have determined the terms of your loan and completed your loan application, the next step is to lock your rate. A rate lock is a lender’s commitment to an interest rate for your mortgage loan. Rate locks are applied with the assumption that the loan application and terms will not change in any way. Initial locks may be requested for 60, 75, 90, or up to a maximum of 120 calendar days. Locking your rate will allow you to be protected from interest rates that could potentially increase during your application period.
When should you lock your rate?
Once you have found a home to buy and your offer has been accepted, First Tech will work with you to understand how long it typically takes to process your loan and discuss the timing for your rate lock. You don’t want to request a rate lock too early. If your loan doesn’t fund before your rate lock expires, your rate lock offer will no longer be valid and you may be subject to extension fees or pricing adjustments. Your loan officer can help you determine which rate lock period will provide you the best protection for your transaction.