Securing a specific mortgage rate with a VA-backed loan
Locking in a specific mortgage rate is, generally speaking, the method by which a borrower cements a set interest rate with a lender. Locking in a set rate includes a built in deadline so that if the deadline in broken the specifics of the rate must be recalculated based on any market changes. Thus, locking a lender in at a set rate is how any borrower confirms the exact rate of their mortgage.
The goal, clearly, is to lock in a rate that is as favorable to you as possible. The best way to do this is to use online resources to verify current average mortgage interest rates-particularly focusing on VA-backed mortgage rates and general mortgage rates as points of comparison.
If the rate you’ve been offered compares favorably – you may well want to act fast and lock in.
What happens if you fall behind, though? What happens if you end up taking longer than the agreed upon deadline allows for and you can’t close in time? Well – that depends more on the lender. Many lenders will allow a brief grace period, or allow an extension in exchange for a moderate adjustment of the loan terms. Depending on the specifics of the full loan package, these options may be worth pursuing.
Never rush yourself and lock into a rate too quickly, but – at the same time – don’t let an especially useful opportunity escape because of uncertainty. The best bet is, generally, to begin watching market fluctuations in advance of making your purchase to help you get a feel for the market. By doing this you can get a direct feel for the rates and better appreciate the numbers at your fingertips