homework ahead of time. Always understand your escrow company’s fees before entering into an agreement.
Step 2: Lock in the Interest Rate
Part of the closing process involves shopping for a home loan, finding a good deal at a great rate, and then “locking” that rate down — a mortgage rate lock, as we discussed in Chapter 9. A mortgage rate lock guarantees that a mortgage lender will give a buyer a certain interest rate, at a certain price, for a certain period of time. This protects the borrower from rising interest rates in the period between sales agreement execution and closing (often a month, but sometimes longer). So, for example, if the buyer locks in a rate of 3.25%, he or she will have to pay only 3.25% interest, even if rates rise while going through the loan application process. A mortgage rate lock is typically good for 30, 45, or 60 days, though that time period can be shorter or longer. Once that time frame expires, the buyer is no longer guaranteed the locked-in rate, unless the lender agrees to extend it. However, this extension could come at a price, so always do your research, and find out what your lender requires. Arranging a prompt closing is crucial.
Step 3: Protect Yourself with Home Insurance
Make sure you’re covered with homeowner’s insurance before the closing process. Unless you’re paying the sale
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