Home > Uncategorized > Mortgage Mistakes to Avoid: Forgetting to LOCK your rate!

Mortgage Mistakes to Avoid: Forgetting to LOCK your rate!


Many clients ask, “When should I lock?” I always answer, “IF you are happy with your rate, lock now!” The benefit/risk scale is tipping heavy on the risk side here.  The markets move all day everyday and we cannot control the movement in interest rates.  IF you are a gambler you can float however you need to be prepared for swings in the market.   I watch the market all day so I can see trends that may lead to a change in rates  however I’m Speedy Leslie not Speedy Gonzalez so many times, regardless of how quick I move, I cannot get into the lock desk before rates change.

Many people then ask “What if I lock and the rates move?” MOST of the time, when your loan is locked,  it’s locked.  Good, bad or otherwise.  The rate will not change.   SOME lenders do have a float down option that if you lock and rates get better, and you meet a miriad of requirments, you may be eligible to drop the rate.  Typically those lenders are priced higher out of the gate so really you are better off just settling into your locked rate and relish in the comfort of it’s security.

Remember, we are globally exposed with our markets these days.  Something crazy can happen in Egypt and our markets move.   Given the millons of things that can impact the market, if you are happy with your rate, just lock it.  You can thank me later.

Never assume your loan is rate locked until you get confirmation in writing from your loan officer.

One last thing, when you are loan shopping:  All the rates you are quoted are only quotes.  That quote is not secure until you lock the loan and with rates moving sometimes several times in one day, you really need to know WHO you are dealing with.   Are you being quoted some fantastic rate just to reel you in? Then when it comes to lock time, the story changes? Hopefully not but this is when a referred loan officer makes all the difference. 

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services

602.294.9288 (p)

www.fcfs.net

mortgagedr@fcfs.net

MB#0902810 / NMLS#162494

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