Remember when you spoke with a lender about getting pre-approved? Well now is the time to get back in touch with them as well as compare their rates and closing costs with any other trusted lenders that you’ve been referred to by trusted people and your trusted agent!
The importance of your decision on who you select as your lender can not be emphasized enough!. This is a critical piece of the puzzle and so many aspects of the transaction hinge on having a good lender who knows their business well and has your best interests at heart. For more on how to determine the best lender to work with and compare rates and costs, see our Guide on Picking a Lender.
When you’ve decided the lender you are going to go with, its time to Lock in Your Rate. Locking your rate is when your lender guarantees that rate for a specific period of time called your Rate Lock Period. This should coincide with your closing date and is usually 30, 45 or 60 days. Rates may vary based upon the length of your lock period with the shorter periods offering the best rates. If your contract calls for a closing date 30 days from the binding agreement date, its usually best to lock the rate for 45 days in case the closing is pushed out a few days for some reason. Rates change daily and often multiple times per day so its important to lock the rate now so that you don’t have to worry about your rate going up. Note: you cannot lock your rate until you have a binding agreement, and the lender will require a copy of the signed contract in order to lock your rate which your agent can provide to you and your lender.