Here’s why rate locks are important to buyers.
A rate lock is a contractual obligation between a lender and a buyer, of which there are four major components: the loan program you’re locking in, rate of interest, cost to attain that rate, and length of time the rate lock is in place.
Why is it important to have a rate lock? If any market deterioration is expected in the near future, you want to lock in a low rate now before that happens. If rates deteriorate, you’re protected because your rate is already locked in.
If you have questions about this or any mortgage topic, don’t hesitate to reach out to me. I’d love to help you, and I hope you have a wonderful day!