David R Youngs - Senior Mortgage Consultant (DavidRYoungs)
#3 ranked lender in Minnesota - 33 contributions
Great question! What many may not know is that technically speaking you are locked into the rate "PRICING" of that date, based on what the cost was as of the lock date. You as the borrower have the right to adjust your rate if you choose, but it would be based on the rate pricing/cost as of the previous date you locked. When you lock in, you lock for a specific time period, typically 15, 30, 45 or 60 days. As long as your new loan closed AND funds within this time period, then you will be able to get the rate you locked on. That said however, keep in mind that you are locked based on your current qualifying terms (Ex: your credit, the home's appraised value, property type, etc.). If anything changes regarding your qualifications, then this could impact the rate "price," however again this would be based on the original pricing from the date you locked. It is important to read through your "rate lock agreement" disclosure form carefully to fully understand what you and the lender's commitments are to one another. This should give you a clear understanding of what you are agreeing to. Some may even choose to have a real estate attorney review these types of documents, in order to ensure that your interests are being met and to perhaps obtain a clearer understanding of the legal agreement. Above all, the most important thing you can do to ensure your interests are protected is to work with a highly qualified, knowledgeable and honest Mortgage Professional that is able & willing to take time to answer your questions and explain the loan process beginning to end. If you have any specific questions or would like a FREE consultation, feel free to contact me at 651-636-2840 Ext 12 or email me at email@example.com. Thanks!