So it seems like this week is all about locking rates So today I would talk to you about when you can lock your rate when you're buying a home This is something many people are confused on so most people are like well, can I lock my rate? Why shop? Right now most lenders are not doing that. And the reason I'm not doing that is because we're in a declining market So what that means is like for instance if I have locked a client in January and said yeah go I've got you locked at XYZ for 90 days go shopping by the time that 90-day period hit if they got into contract my rates would be lower than what I had locked them at so it's not a Benefit to the borrower with a purchase once you're in contract is when you're going to be locking I generally suggest that you lock within the first two weeks so that if you know You don't need a position If you saw my video on Tuesday Where you're towards the end and the linters locking you and you can't even switch lenders and it's a rate higher than you thought you Really want to make sure you lock in in those first two weeks so that you're safe and secure and you know What's gonna happen? It tastes a lot of anxiety about a way from the entire process? Okay so for instance I generally lock if the if If you like it lock it has always been my motto because I don't want you guys in a position where you're waking up in The middle of night you're like what if rates go up if you like it lock it Okay Once you're in contract so back in the day There were programs called like walk-in shop is what we called ours and 20 18 degree example one that was a good program So what a locking shop is is you pay a little bit of a fee in Order to lock in a rate while you're shopping for the house Okay And in a market where rates are increasing it's a great program because it protects you from those rates in the rate increases and it also makes it so that you know, the big concern is a lender is if I qualify you for $300,000 and then rates go up half a percent.
You may not qualify anymore So it's really tough from a lender perspective to make sure that your qualification is on point in a time of rapid rate Increases in 2018 is a great example of that I think we have like five green increases four to five over twenty eighteen and nineteen. It was brutal So that's what you'll see a lender do a walk-in shop right now since we're in a declining environment meaning rates are getting lower there's not locking shop programs out there that make a whole lot of sense because the odds are is if we utilize one by the Time you got into contract rates would be lower. So I hope this makes sense if you guys have questions comments Feelings I love feelings Please feel free to reach out.
If you want to chat. Please schedule a link on my calendar my email is just It's brutal now guys, it's brutal. So if you send me an email, and I don't respond for a week It is not because of you. It's not some ignoring you. It is literally because since my email is public I get Every single type of spam you could ever imagine. I'm people trying to sell me office filters like it's out of control So please schedule a link to chat, but if you want to lock your rate It's best to do it once you're in contract because we're in a declining environment.