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"How Do Rate Locks Work?" You can lock your rate before your loan is approved, you can even lock your rate before your loan is submitted. In general, we can get you a (insert # of days) day rate lock for an extra 0.125 in rate or 0.5 points in cost. It must be noted that the cost for extended locks can vary significantly with the volatility of the market. When rates are volatile long term locks are more expensive. The loan must fund before the "lock expiration" date or you can lose your rate lock. When we are locking your rate and discussing the lock expiration date it is important that both borrowers if there are two borrowers be available to sign the documents. You must inform your lender of your vacation and travel plans. If one borrower will be out of town we can have a "specific power of attorney" prepared so that the other person may sign for both.
The loan professional that has made this information available to you specializes in assisting those individuals with obtaining a home loan whether for purchase or refinance. Your loan professional in most cases can advice you on the best approach and help you with your specific loan requirements.
