With mortgage rate hitting their highest level in seven years, some lenders are coming out with products that are helping to keep rate increases at bay while the borrower is shopping.
This feature is called “Lock and Shop,” and it’s as simple as its name. Usually a borrower cannot lock into a rate until they have selected a property and come to an agreement on a price. The Lock and Shop feature allows you to lock into an interest rate for 60-90 days while you are shopping for a home. Once you have found a home and your offer is accepted, the address is added to the lock and then an appraisal is ordered. The file will then be underwritten and approved the same way as if someone had locked in after they had found a property and did the standard locking process.
Keep in mind that if you do not close within the lock period that you have selected, there will be additional fees to extend the lock.
If you do not find a property, the lock simply expires, and you can then relock a rate at the current market rates.
With the Fed raising rates this year three times and possibly a fourth by year’s end, Lock and Shop is a great option to protect you from rising rates while you shop.
To contact me, call 773-557-1000 ext. 15, e-mail firstname.lastname@example.org or visit http://www.ronmortgage.com.