25 Feb Locking in Your VA Mortgage Rate
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.