#6 When can I lock my interest rate?
Some lenders will allow you to lock your loan before you have an accepted offer to purchase but most lenders will not. It’s important to know before you begin shopping for a home when you can protect yourself against rising rates.
Risk is the primary factor in locking a loan and a fast shifting market can wreak havoc on a lenders bottom line. A mortgage rate lock (also called a lock-in) is a lender’s promise to hold a certain interest rate at a certain number of points for you, usually for a specified period of time. It’s meant to cover you for the time period while your loan application is being processed and you’re preparing for the closing.