LOCK OR LET IT FLOAT?
SHOULD YOU LOCK-IN YOUR INTEREST RATE?
Like stock prices, mortgage rates are subject to market fluctuations. A quoted rate isn't guaranteed and may change by the time a loan is ready to fund 30 or sixty days down the road. A quote is really the right now rate that's only valid if a loan is ready to fund right now.
Interest rate locks protect borrowers from rate increases but at the cost of not getting a lower rate (unless the locks have a one time float-down provision).
Borrowers who are maxed-out on their approvals should definitely consider locks as any rate increases could kill refinances or home purchases. Others can feel free to play the market depending on their risk aversion and financial reserves. The lock-in charge is also part of the decision process.
Don't Rely on Internet Pre-Qualifiers
Most borrowers don't have the knowledge required to provide the relevant and complete financial information needed to make online pre-qualifiers accurate. There is no substitute for a one-on-one interview by a home-loan expert who knows what's required for underwriting a mortgage.
The major strength of a mortgage loan officer is that he can guide them through the entire loan process for the best rate much easier than a borrower can. A mortgage loan officer also learn the products of certain wholesale lenders and can pick the lender for a borrower that may be unique in some way. He will be able to advise you whether your loan should be submitted to a wholesale lender(Borrowers cannot get access to the wholesale divisions of mortgage bankers without going through a loan officer, or a mortgage banker). Another advantage is that, if a loan gets declined for some reason, a mortgage pro can simply repackage the loan and submit it to another wholesale lender.
Talk to a Mortgage Pro
