Lock and Shop

Purchase

Typically mortgage interest rates can fluctuate daily or even multiple times a day, which means that the rate you are quoted when you apply for a loan will likely change by the time you’re ready to close on a house. The Lock and Shop program is designed to provide borrowers with peace of mind by enabling them with the ability to lock in their mortgage interest rate while they shop for a home.

With the Lock and Shop program, borrowers can secure a particular interest rate for a specified period, even if rates increase during the lock commitment period. This allows borrowers to shop for a home knowing that their interest rate is locked in, protecting them from potential rate increases during the lock period.

Once approved, borrowers can choose to lock in their interest rate under the Lock and Shop program. This means that the interest rate they receive at the time of locking will remain the same for a specified period from 45 to 180 days.  This protects borrowers from potential rate increases during their home search.

With the interest rate locked, borrowers can focus on finding a suitable home within the specified timeframe. It provides them with the peace of mind that their interest rate won’t change during this period, regardless of market fluctuations.

When the borrowers find a home and have a purchase agreement in place, the mortgage application proceeds to the loan processing and underwriting stages. The process involves verifying the borrower’s financial information, conducting an appraisal, and ensuring all necessary documentation is in order. If all requirements are met, the loan can move through the closing process.