QI see headlines that say mortgage rates are falling. I see headlines that say mortgage rates are rising. When shall I buy and lock-in my rate?


 A  You really can’t go by your daily newspaper to find out what mortgage rates are doing.  One reason is that by the time they report the rate, it has changed. 

The key, if you want the best rate is to speak with a mortgage banker, develop a relationship with him or her, and when they think the time is right (and you agree) then lock in your rate.

A lock is a guarantee by a lender that your mortgage will come with a specific interest rate, points and other costs.  Lock agreements will cost money and you should inquire as to the terms.

Locks are also limited in time, to protect the lender if you decide not to buy immediately. Be sure to discuss the time needed to process your application so whatever lock period you choose is long enough.

Before going for a lock, be sure you gather all your paperwork: credit report, income documentation, asset and debt documentation and whatever else you need to support your mortgage application. You will want to quickly submit your application as soon as you lock in your rate.

 You can read more about locks in a document by the Federal Reserve Board.

We are on standby for you when your ready to get started, if you are ready, go to my website at County Properties.