tiered system.
For example, in general, rate locks of 30 days or less are usually free; some lenders offer free rate locks up to 45 days. Generally, after 45 days, the rate lock will start to cost you in incrementally higher fees, often in 30-day increments. Further, it’s common for each 30-day extension to also cost a quarter-point in additional fees, although specific fees can vary significantly from one lender to the next. So how do you know exactly when to lock in a mortgage rate? First, you should know that you can’t lock in a mortgage rate until after you’ve been approved for a loan. This is another reason that getting pre-approved for a loan is so important. As many home buyers do, you might decide to wait to lock in a rate until you’ve found a home you’d like to purchase and put in an offer for. This is often recommended — wait until you’ve found a home that interests you, and that meets all of your needs and most of your wants. This is because you won’t know how long it will take, after home loan approval, to not only find a suitable and desirable home and make an offer, but also to have the offer accepted. Some buyers are lucky and find — and land — the home of their dreams, but others take longer, and this is more typical for the average home buyer. KNOWWHEN TO LOCK IN A RATE
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