Home Loans
QHome Mortgage Rates Keep Moving Up And Down And It Looks Like The Owners Of The Home I Made An Offer On Will Be Accepting My Offer Soon. What Can I Do Now To Ensure I Don't Get Stuck With A Higher Rate In A Few Weeks When I'm Ready To Apply For Financing On My Home Mortgage?
AJust because the sellers of the home you want to purchase haven't yet accepted your offer, doesn't mean that you can't get the financing ball rolling. Some lenders will lock in your interest rate when you apply for pre-approval of a home mortgage, and this can protect you from unstable interest rate hikes. Don't be surprised if your lender charges a fee to lock in your rate; some lenders do and the rate charged will vary. You also need to remember that if you lock in your rate with the pre-approval, you will need to make sure that you close the loan within the lock-in period or you'll lose the protection offered by the lock in. Just be aware that if interest rates go down, you're going to be locked into a higher rate, so make sure that guaranteeing the current interest rate is really what you want to do before you decide to lock in any rate. You may also want to consider a lock in that will allow you to float your rate down one time during the lock-in period in case rates do drop substantially.