Link state in the Interest Rate Lock Agreement

Aug 6th, 2022
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How to link state in the Interest Rate Lock Agreement

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today were going to be talking about how to get the builders lender to give you a better deal on that interest rate okay so first of all if you guys find this content valuable please like and subscribe or if you hate me and just tune in to hate dislike anything just like hit those buttons okay if you guys have content you want as always please put it in the comments i am here to help educate and empower you guys so let me know what you want okay lets work over the builders lender on rate lets do it okay let me tell you whats been going on for the last few years so you guys understand why im doing this video so for the last few years you know weve seen a huge uptick in new construction and theres a lot of builders where they will own the mortgage company that theyre recommending so the way the pitch goes is it goes oh yeah just sign with us and if you use our lender then well give you five thousand or ten thousand dollars off your closing costs and youre a first time home bu

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You can choose to lock in your mortgage rate from the moment you select a mortgage, up to five days before closing. Locking in early can help you get what you were budgeting for from the start. As long as you close before your rate lock expires, any increase in rates wont affect you.
You can back out of a mortgage rate lock, but there are consequences. Backing out of a rate lock means giving up the application youve put time and money into. Youll have to start your mortgage application over from the start, and youll likely have to re-pay fees like the credit check and home appraisal.
A rate lock guarantees the lender will honor your quoted rate for a specific time. The initial rate lock on a 30-year mortgage typically lasts 30 or 45 days, though some lenders allow up to 60 days.
Many lenders offer slightly different interest rates depending on what state you live in. To get the most accurate rates using our Explore Interest Rates tool, youll need to put in your state, and depending on your loan amount and loan type, your county as well.
A lock-in or rate lock on a mortgage loan means that your interest rate wont change between the offer and closing, as long as you close within the specified time frame and there are no changes to your application. Mortgage interest rates can change daily, sometimes hourly.
If your rate is not locked, it can change at any time. There can be a downside to a rate lock. It may be expensive to extend if your transaction needs more time. And, a rate lock may lock you out of a lower interest rate if rates fall after you get your loan offer.
The borrower may rescind any lock-in agreement until a written confirmation of the agreement has been signed by the lender and mailed to the borrower or to the mortgage broker pursuant to its contractual relationship with the borrower.
Also, keep in mind that the lender can void a rate lock if certain items on your credit report or mortgage application change between the time of your agreement and final underwriting.

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