month or two). If the buyer locks in a rate of 7.00%, he or she will only have to pay 7.00% interest even if rates rise while going through the loan application process. A rate lock is commonly good for 30, 45, or 60 days, though that period can be shorter or longer. The longer the rate lock, the higher the rate will be as the lender is taking a risk guaranteeing the rate for a longer period. A 30-day rate lock could have an interest rate of 7.00% whereas a 45-day rate lock could have a rate of 7.125%. It is not advisable to "bet-the market" and wait to see if you can get the lower rate. So let's say you sign a contract for a closing to take place in 45 days. It is better to lock in a 45-day rate lock rather than wait 15 days to get a 30-day rate lock. More times than not, the rate can go up so that by the time you reach the 30-day rate lock period, its corresponding rate may be higher than what the 45-day rate lock was at 15 days earlier. You will sleep better at night if you lock in the rate. If your closing gets delayed and the rate lock expires, you are no longer guaranteed the locked-in rate unless the lender agrees to extend it. This is why arranging a prompt closing is crucial and locking in a rate for a term slightly longer than the closing date is advisable.
#3. Have a Home Inspection
Making sure roofing shingles don’t fall off on the first day in your new home or the furnace doesn’t operate under 45 degrees is generally enough reason to have a home inspection. Engage specialists to check the roof, foundation, mechanicals, plumbing, and electricity. This could save you thousands of dollars by uncovering existing issues. Even new houses need to be checked duly and thoroughly. It doesn’t matter that the house recently had all the municipal inspections by the builder.
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