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Just curious, when would the mortgage bankers here suggest rate locking your mortgage? Should we do it once we have an accepted offer? Or only have a contract is signed. To my understanding, rate locks are only good for 45 or up to 90 days. So don't want to get penalized if the rate lock expires before closing.
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You should certainly wait until you have a signed contract in my opinion before rate locking your mortgage. I know some buyers get too eager, especially if they think rates are currently low, and lock in a rate too soon, sometimes when they've just gotten verbal confirmation that a seller has accepted their offer. This is complete folly as a deal is nowhere near certain at this stage. Remember that offers only become binding for each respective party once they've signed the purchase contract.
Therefore, hold your horses until contracts have been fully executed! That means waiting until the seller has counter signed the contract so you know you have a real deal on hand. Even then, if you are getting a mortgage the closing process from contract signing to closing can be up to 90 days, so you may wish to delay your rate lock even further.
Remember that rate locks expire after a certain time period which varies with the situation and bank, perhaps 45, 60, or 90 days. Therefore, don't do it too soon. Remember that anticipated closing dates have "on or about" language .... giving both sides 30 days leeway on approximate closing date. -
I heard from a Chase banker about 2 or 3 weeks ago that they can do a 180 day rate lock. That's a bit longer than I've heard being possible before, and definitely gives you some flexibility if true. That bank also said there is a 1% penalty if you need to extend the rate lock, though you do get it back if you do the deal with Chase.
This guy also said that Chase will do 85% LTV up to $3mm loan amount in NYC, and up to around 90% LTV for a loan amount up to $2 million as of Spring 2018.Comment
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