AgentMortgage

Navigating real estate loan locks, docs

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(This is Part 7 of a seven-part series. See Part 1: Mortgage shopping: what you should know before you begin; Part 2: Pros and cons of fixed, adjustable mortgages; Part 3: Three options available on most mortgages; Part 4: How long should you take to pay off your mortgage? Part 5: Investment returns influence real estate down payment; and Part 6: Understanding choices in mortgage insurance.) This is the last of seven articles on the decisions mortgage borrowers should make prior to entering the market. Previous articles were about selecting the type of mortgage, term, various options, down payment, and mortgage insurance. This article is about selecting the lock period and the documentation. Lenders lock (meaning "guarantee") the rate and points for a specified period. If a fixed-rate mortgage (FRM) is locked at 5.5 percent and one point for 45 days, for example, the lender is committed to closing at that price anytime within the following 45 days. For 30- or 60-day locks, expect to p...