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All signs on the real estate news front are indicating that if you are shopping around for a mortgage, now may be the time to lock in your rate. What’s the big deal about locking your interest rate? It’s the only way to guarantee you’ll receive the interest rate quoted at the time of settlement. Until your lender secures or “locks” the rate, your rate and terms are not guaranteed.

Lock terms vary anywhere from a week to even 120 days currently. You should choose a lock term that will allow you plenty of time to get your loan closed and your house purchased. Should you need to extent your locked rate, terms and program, you may be able to do so but it will usually come at a cost.

Some lock-ins are given in writing, where terms and costs or fees are spelled out. Other times, verbal lock in agreements may be all borrowers are offered. As with most things, it is best to get a written statement regarding your locked rate and terms. Read it over carefully before you complete the form and if you have questions, resolve them with your attorney or your broker or lender before you sign.

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