Set theme in the Interest Rate Lock Agreement

Aug 6th, 2022
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How to set theme in the Interest Rate Lock Agreement

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hey guys welcome back to another video on how to buy your first property today I want to focus particularly on financing part because Im actually getting a mortgage set up for a potential investment sometimes deals come up where you need to close within 30 days 15 days so being fast and being ready is extremely important if youre able to offer great terms on short closing date maybe no financing condition this is how you can make your offer even more attractive to the seller even if youre not paying top dollar and that way you can Bank a little bit more money in your pocket and wait for that appreciation you can get a morgage almost at any financial institution big Banks obviously do it Credit Unions also do it sometimes theyre also specialized lenders that focus on specific niches in the market typically the first first place you will go Are banks theyre the ones that are most well known and they are available everywhere however the rates that they charge you do reflect that ther

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Rate Locks are to be written and signed agreements by our borrowers from what I gather on this unclear rate lock topic.
If your interest rate is locked, your rate wont change between when you get the rate lock and closing, as long as you close within the specified time frame and there are no changes to your application. Rate locks are typically available for 30, 45, or 60 days, and sometimes longer.
Key Takeaways A locked-in interest rate, also known as a rate-lock, is when the lender agrees to lock-in the interest rate before closing. Lock-ins are generally used with mortgages, allowing homebuyers to ensure the rate does not increase from the time they accept the bank offer to closing on the home.
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.
Never lock in a rate before the contract is signed. Know what your on or about closing day is. Most mortgage lenders offer 15, 30, 45 and 60-day rate locks. Choose a lock period that gives you the comfort of knowing you have enough time to get through 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. The ideal time to lock your mortgage rate is when interest rates are at their lowest, but this is hard to predict even for the experts.
A rate lock protects you from the potential of rising interest rates during the home buying process. Some rate locks will also grant a float-down provision that will allow you to take advantage of lower rates in the market. A rate lock period will typically be 30 to 60 days.

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