A Better Way To Lock Your Mortgage Interest Rate (More Security For Home Buyers)

Locking you mortgage interest rate is something that needs to happen before your loan closes and we have a better way to do it! Imagine knowing that your interest rate won’t change from the time you start house hunting until you close on your purchase.

What’s your interest rate what did your bank approve you for what rate did you get on that upcoming purchase or refinance are you in the loan process right now have you locked your interest rate it’s not familiar to anybody locking your interest rate is one of the most important parts of the entire loan process and not a whole lot of borrowers or buyers for

That matter know what the heck that is so we’re going to go over it today mike ferrosi for super loans nmls 237-341 and locking your interest rate is another way to say securing your interest rate for the duration of the mortgage process so everybody gets pre-approved for a purchase everybody gets approved for their refinance eventually fully approved for their

Mortgage purchase their home purchase for their mortgage as well and that pre-approval or full underwriting approval is based on a whole bunch of different calculations and a lot of those calculations hinge around what your proposed mortgage payment is going to be and you don’t know that unless you know what the interest rate is and as many people know interest

Rates change it’s a moving market just like the stock market they change they move they adjust up and down on a daily basis so what your interest rate is today may not be your interest rate tomorrow interest rates can also affect your closing costs that you may have to pay out of pocket as well so even if your interest rate stays the same those closing costs might

Be changing by dollars and cents a little bit up or down every single day that’s why it’s important to stay in contact with your mortgage expert about these things right up until you lock your interest rate locking an interest rate basically gives you the buyer or the refinancer a commitment from your lender and we would commit to give you the interest rate that

You lock in no matter what the market does between that day and the day that your loan closes it ensures consistency in the transaction it actually helps us underwrite the loans and make solid underwriting decisions because we know that your mortgage payment is no longer in flux we know what it’s going to be and for you it just takes the unknown actions of the

Mortgage market completely out of the mix so you don’t have to worry about that stuff anything that can reduce stress in the mortgage process is something that we want to do now that usually happens a little further down the line in the mortgage process you get pre-approved maybe you find a house that you want to buy you put an offer you have that offer accepted

The mortgage process starts rolling you open escrow on your home an underwriter gets all of your documentation from you so they can make the decision about whether or not they’re going to fully approve your loan if you’ve been pre-approved by a reputable bank of course they’re probably going to fully approve your loan as long as everything checks out with the

Property that you’re going to buy and the appraisal on that property once you’re getting closer to the end of the mortgage transaction oh your mortgage expert’s probably going to reach out to you and say hey we should lock your rate here’s a finalized quote initially it looked like this interest rates may or may not have changed a little bit it’s not really going

To affect you all that much as it pertains to your mortgage payment so you lock your rate and you move on to closing but that’s not the most desirable process these days is it the mortgage market has been volatile in historic ways over the past few months we’ve seen big swings in rates not just weekly swings but even overnight swings rates going up and down based

On inflation and federal rate hikes which actually help mortgage rates but that’s that’s a topic for another video there have been big swings in mortgage rates and the last thing that you want is to get two to three weeks into the purchase of a home and realize that your rate has gone from three percent to four percent a large change in interest rates like that

Can have an effect on your mortgage payment of hundreds of dollars a month so much that you could find yourself in a position to where you’re in escrow on a home that you can actually no longer afford and we want to avoid that at all costs so what we’ve seen in the mortgage industry is a trend in home buyers and home refinancers for that matter looking for some

Extra security and wanting to lock their loan lock their interest rate earlier in the process and that’s why we have a new feature to offer you i know not all mortgage banks do things like this but typically on a normal mortgage interest rate lock you need to have a few pieces of information the mortgage bank is going to need to know who you are they’re going

To need to know what type of mortgage that you want obviously they’ll know the interest rate because you’re going to be working with a fresh quote from the day that you do a rate lock with your mortgage expert but they also need to know what property you’re buying we need to know who you are what kind of loan you’re getting and what property you’re buying if we

Have those pieces of information and we can say okay here’s what your rate would be and we can lock that in for however long you need to really until that mortgage is going to close we do a lot of rate locks for 12 days 25 days 40 days 55 days they typically vary in length between two weeks and two months but that’s the period of time that your interest rate will

Be secured but what if you want security while you’re house hunting that has been a problem because that third piece of information the property that you’re going to buy if you’re still have something you don’t have that yet so you can’t lock an interest rate you have no predictability if there’s a big swing in interest rates you might have to change the houses

That you’re house hunting for and i’m pleased to say that we fixed all that with our new lock and shop feature from super loans lock and shop is a feature that allows you to lock your interest rate before you know what house you’re going to buy that’s why you can lock and shop maybe we should have called it lock then shop anyway semantics being able to lock an

Interest rate gives you all the predictability and mortgage payment for you to house hunt for whatever house in whatever price range that you deem comfortable you don’t have to worry about working in a little bit of wiggle room just in case the mortgage interest rates change a little bit on you you can lock your interest rate for 60 or 90 days for no upfront fee

It’s completely free to you and that interest rate will live with you for however many days that you choose allowing you to find a house put in your offer close escrow on that deal get the interest rate that you knew about months ago regardless of what the market is doing currently it’s an ultra secure way to shop for your new home take out the stress that the

Mortgage markets can introduce into a mortgage transaction it’s not necessary head over to superloans.com click on buy a home if you fill out our two minute application questionnaire one of our mortgage experts will be in contact with you in no time for a custom quote and now if you like that custom quote you can lock that rate right now even if you don’t have

A house picked up yet trying to make stuff a little bit more convenient for you i think this is a big fix to an issue that a lot of home buyers face that they’ve been facing unnecessarily if you like the idea let us know in the comments below if you don’t like this idea let us know in the comments below how can we change this how can we tailor this how can we

Tweak this to fit your needs a little bit better i’d love to know i want to hear from you mike with super loans nmls 237-341 thank you for watching and we’ll talk to you next time

Transcribed from video
A Better Way To Lock Your Mortgage Interest Rate (More Security For Home Buyers) By Super Loans