Home Buying Strategies That Work
Hello People. In our last segment of Home Buying Strategies That Work Steven Moye was being interviewed about "loan locks" and the best time to pull that trigger. Here's the second half of that interview.
Home Buying Strategies That Workwill take close watch on the rates. Currently interest rates are at incredibly low levels with 30 year fixed starting in low 4% range...but interest rates are prone to price changes on a daily even minute by minute basis, locking your rate with your lender guarantees your rate for a pre-determined length of time...usually 30 to 45 days.
But, the length of the lock has to take into consideration how long of an escrow you are in, and your lender's current turn around time. If you lock too early in the process, you may be subject to a fee for extending the lock if you go past that date, or may lose that rate altogether. If you float your rate too long, you may be subject to a higher rate than quoted because the rate markets saw rate move higher.
The best Home Buying Strategies That Work (For loan locks) is to wait until at least the appraisal has been done, to verify that the value is supported, and in the case of purchasing a condominium project verify Homeowners association information such as owner occupancy %, and if there is any pending litigation as both of these could kill your purchase before you begin.
Stay in contact with your loan professional, ask them to explain their strategies for when to lock, ask them what tools they use to monitor rates, and don't listen to too many people. The fact is that you may lock too early and someone may get a rate slightly less, or you may lock too late, but when considering when to lock, you need to consider your levels of risk...if you are tight on income, locking your rate should guarantee your maximum payment and make closing a little smoother.
Thanks Stephen (619-895-8128). Good stuff!
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