great rate, but in the end, you aren’t financially ready to apply for and qualify for a mortgage, then you’ve not only lost on a great rate, but you’ve wasted time and energy for nothing. As I’ve said a number of times throughout this book, some of the pieces of being financially prepared including checking (and possibly fixing) your credit score, saving and having enough for a down payment, keeping on top of building up your regular savings account, determining how much you’ll need for monthly mortgage payments — as well as other standard costs, such as closing costs, homeowner’s insurance, property taxes, and ongoing maintenance — and looking for homes that fall within your budget. Bankrate.comadds that “if you lock in a rate too soon and end up going with a different type of loan, your rate lockmight be void.” You could also lose out on a mortgage rate lock if your situation happens to change, including a significant credit score shift or change in debt-to-income ratio, before closing and ultimate settlement. THE BOTTOM LINE In the end, when you’re shopping for a home loan, looking for a great deal, and then locking in that deal, is a good idea and general rule of thumb. The trick is to know when to lock in a rate, and to find out each lender’s rules and policies surrounding mortgage rate locks. Mortgage interest rates, and mortgage rate lock fees, can vary significantly from day to day, and from lender to lender, so it’s best to take your time when researching and shopping. Further, in addition to shopping around, when you’ve found a lender, a low rate, and you’ve decided to lock it in, it’s imperative that you get that mortgage rate lock in writing. Don’t make any
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