When Should You Lock in Your Loan Rate?
It's understandable that you would like to have your mortgage rate locked while you are home shopping, but this is the worst thing to do. It takes time to find the perfect home, write an offer and get it accepted by the seller. So when is the right time to lock in your loan rate? You should lock it in only when your offer has been accepted and you are officially in escrow. If you have an offer on a short sale that the seller has accepted you will still need to wait 
until all lien holders have agreed to the short sale and have accepted your offer.
Why should you wait until an offer is accepted? Well, loan locks expire. They usually are between 30-60 days, but can be for a bit longer. If you haven't closed on your home and your lock expires you will have to ask your lender for an extension of the rate lock. If they can do this it usually comes with fees that will need to be paid by you.
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