Should I lock in rate for home loan?
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I've been pre-approved for a home loan from my credit union. However, I'm still looking at houses and haven't made an offer yet on any of them. If I lock in the rate of 6.125 with my credit union, I'll have to cough up $500 for the application fee. Should I wait until I've found a house? Also, I want to shop around to try to get the best loan so is it wise to lock in a rate when I'm not sure I even will use my credit union?
Should I lock in rate for home loan?6.125% is an incredible rate if we are talking about a 30 year fixed rate. However, most locks are only 30 days in length so without a home- it probably wouldn't help you to be locked in at this point. I would guess that the 6.125% WAS the rate when you initially were pre qualified for the loan as I find it hard to believe they will still honor that rate. Finally, I would NEVER pay an application fee to anyone for anything. It is a complete junk fee to get them paid if you do not close the loan with them. No money is needed on a standard rate lock. Find your home, shop for the rate with 3-4 people (be sure to ask the Credit Union if that rate is still available as I'm guessing it is not), choose your lender and go from there. Don't compare closing costs as they are generally the same regardless of lender outside of application fees and/ or origination and broker fees.
Should I lock in rate for home loan?NEVER PAY FEES UP FRONT!!! The only acceptable thing to pay for before the loan closes is an appraisal. And you pay that to the appraiser, not the bank.
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