2022 Mortgage Rate Lock Update

2022 Mortgage Rate Lock Update

Mortgage Rate Lock Update: Know Your Locks!

If you are curious about the 2022 Mortgage Rate Lock Update we will go over exactly the process for making sure you go through with your 2022 Mortgage Rate Lock properly.  In a general sense, what you need to know first is exactly what a mortgage rate lock is.  I can tell you that a rate lock is when your lender locks a mortgage rate for a certain amount of time that is normally a few days after your scheduled close date of the loan you are looking to get.  There are normally 4 different lock periods that a lender can get for you and they are: 15 day lock, 30 day lock, 45 day lock, and 60 day lock.
When your mortgage lender does a rate lock, this means the mortgage interest rate is secured and protected should interest rates rise before your loan closes.  The one caveat with the 2022 Mortgage Rate Lock is that if the rates should decrease before your loan closes, then you are normally stuck with the rate you have as you cannot cancel a rate lock and lock again.  If your lender doesn’t do a rate lock then what happens is they cannot get an underwriter to issue a clear to close for the loan.  Now, not all locks are created equal and you must know that for the 2022 Mortgage Rate Lock that the cheapest of the rate locks is a 15 day rate lock and you will end up paying a pretty penny should you want a 60 rate lock.

Mortgage Rate Lock Update: Steps From Application To Rate Lock to Closing
Mortgage Rate Lock Update: Steps From Application To Rate Lock to Closing

It is beneficial for you to know more than just about the 2022 Mortgage Rate Lock, but how you get to that point in your mortgage process and how you will close your loan.  In the following steps we will go through this and how the 2022 Mortgage Rate Lock comes into play.
–          The borrower will begin with the pre-approval process and work with a loan officer to complete a complete loan application, get their credit run, review of all your documents, and ending with running your file through AUS or the Automated Underwriting System.
–          With your pre-approval you can be confident in moving forward with your home purchase and sign on for a real estate purchase contract and the mortgage process is set to begin.
–          A loan processor with go over your file and collect any other documents that may be missed and get your file submitted to underwriting.
–          Once the underwriter is satisfied with the file, they will issue a conditional loan approval.
–          Upon satisfying all these conditions for loan approval, this will be when the 2022 Mortgage Rate Lock comes into play.
–          When the underwriter sees that the 2022 Mortgage Rate Lock has enough time to close, a clear to close or CTC will be issued for this loan.
–          After CTC, docs will be sent out to the title company who will schedule the closing.
–          The funds for the loan will be wired on the closing date and your closing documents and paperwork will be finalized and you will be a home owner.

Mortgage Rate Lock Update: Conclusion

As you can see the 2022 Mortgage Rate Lock is a very important process in the loan process and ensuring you lock your rate at the right time is vital for a smooth close.  Some people want to lock their loan right away and this can be bad because if your loan should get held up in processing or with underwriting, your lock will expire and you will be forced to lock again and pay for this as well.  When dealing with home purchases the standard rate lock is for 30 days and sometimes 15 days depending on when the close of the loan will happen.  Now, the longer rate locks of 45 and 60 days are normally used for refinances by borrowers who want to lock the lower interest rate right away after the application has been submitted and AUS has been run.
Working with an experienced loan officer and team is vital in the smooth processing and closing of your loan.  If you are looking to purchase or refinance a home, then you need to reach out to us ASAP at 888-900-1020 or contact@loanconsultants.org.  We look forward to helping you any time day or night, weekends, and holidays!

Leave a Reply

Your email address will not be published.