Lock and Look: Secure Your Rate Before You Find Your Home

So you’ve been approved for a mortgage, and you’re ready to find that dream home. But you’ve also been hearing scary terms in the news like “interest rate hikes,” “rising markets,” and (yikes) “the Fed.” What do you do?

What Is a Rate Lock? 

One way to protect yourself against rising rates is to request a rate lock. This means that you and your lender agree that your interest rate will remain in effect from the date you request the lock until a specified ending date, typically your closing date. So if you qualify for a rate of 6% and lock, it will remain 6% until that date, even if rates go up.

You can lock as soon as you have found the home you want and have an anticipated closing date. Most lenders’ lock periods range from 30-60 days and may or may not come with a fee.

Although Atlantic Bay’s average closing time is 27 days (hooray!), closing schedules in the mortgage industry tend to range from 30-90 days. Meanwhile, if you haven’t locked your rate, it could go up until the closing happens.

Welcome to Lock and Look

But to lend you peace of mind, Atlantic Bay is taking the rate lock option a step further. When interest rates are rapidly changing, you may feel rushed to find and close on your dream home—and that’s no fun! But our Lock and Look* option allows you to lock a rate that is secured for 90 days, even before you’ve found your property.

More good news about Lock and Look:

• You’ll have more time to find the right home without the worry of rates going up during your search, especially if inventory is low and markets uncertain.

• Lock and Look comes with a creditable deposit that is refunded at closing.

• The program is offered for fixed-rate Conventional, FHA, VA, and USDA products only (no jumbo, bond programs, adjustable rate, construction, or renovation loans).

• Rates going down? You’re allowed a one-time rate reduction (“float down”) option during the 90-day lock period if market rates decline.

Rate Lock Extensions

As we mentioned, the time it takes to close your loan depends on many factors, like your loan program, possible delays (an appraisal comes in low or an inspection finds the roof needs repair), and how well you respond to requests for information.

If your closing is delayed and you exceed the lock period, our standard rate locks on conforming loan amounts allow up to a maximum 30-day lock extension. This will come with a fee, but if the market is not worse than when you originally locked, Atlantic Bay may be able to offer a free 15-day extension.

Shop Without Worry

As always, we are happy to help guide you through the loan process from start to finish and beyond. Changing markets can be scary, but you have a dedicated team to help you. Reach out today for help with all your questions.

*For a full list of program terms, conditions, and eligibility requirements visit https://atlanticbay.com/lock-and-look/terms.