You can lock anytime you locate a property, or start your refinancing process, up until ten business days before the closing. You can select a specific length of time for your lock, usually 15, 30 or 60 days.
Before choosing a lock-in period, ask us to estimate the time necessary to process your loan. Longer lock-ins are usually better. If the loan doesn’t close on time, lenders can extend your lock for free (if market conditions are favorable), charge more for the extension, or charge an additional percentage of the loan amount.
What if interest rates fall?
If interest rates fall during the lock period, you can’t take advantage of the lower rate unless you have included a “float down” provision in the original lock and advise the lender that you want to take advantage of it.