The Dottie & Kate Team
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Lock-In

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When people begin shopping for a mortgage loan, they will hear the term "lock-in" or "rate lock." This helps to protect the purchaser from rate fluctuations during the period specified by the lock-in. This can be beneficial if, during the buying process, rates rise. It can work against a buyer if rates fall during the buying process.

Once a seller has accepted an offer for their property, a rate can be locked. A rate lock is not guaranteed. The purchaser's credit score, the type of property, the loan-to-value ratio, locality and other factors will be considered. Once all information is available, a loan officer can tell a purchaser what their interest rate and overall purchasing cost will be.

A rate is typically locked for a week before closing. This gives the lender time to prepare documents and the purchaser time to sign them. A rate lock, technically, does not cost anything in that there are no fees associated with the benefit. However, there is additional interest tacked onto the rate. The amount of interest will depend on the length of the lock.

If closing does not occur prior to the rate lock expiring, the purchaser can apply for an extension of the lock-in. If the purchaser does not apply for the extension of the extension is not approved, the borrower will be forced to pay the rate that is available at closing.

For more information about lock-ins, speak with your real estate agent. Timing is essential if you want to pay the lowest additional interest possible.

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Dottie Toney                                                                                                                                                                                                                       Kate Swarthout
Keller Williams Realty                                                                                                                                                                                       Keller Williams Realty

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770-715-0512                                                                                                                                                                                                        Cell: 770-715-0612
Email: dottietoney@kw.com                                                                                                                                                                      Email: kateanne@kw.com
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  • Home
  • Find a home
  • Featured Properties
    • 225 Late Rise Rd Monticello Ga
    • 120 Friddell Rd
    • 1600 A Hwy 81
    • 1809 Stark Rd
    • 13759 Woolsey Rd
    • 225 Tussahaw Ln
    • 469 Parker Rd
    • 267 McDonough Rd
    • 1600 B Hwy 81
    • 115 June Court
    • 332 Roberts Point Road
    • 7625 Wright Circle
    • 695 Moreland Road
    • 2551 Hidden Hills Drive
    • 110 Walnut Ridge Way
    • 108 Greenland Drive
    • 29 Highland Circle
    • 521 Blue Cedar Court
    • 779 Crumbley Road
    • 2933 Old Snapping Shoals
    • 171 W Nuthatch Drive
    • 118 Bell Road
  • Home Staging
  • RESOURCES
    • Blog
    • Selling Tips
    • Locations
    • FAQ
    • Real Estate Glossary
  • Contact
  • 1809 Stark Rd