Timing a rate-lock

How to ensure lender's price quote is legit

"Mortgage interest rates are currently at record lows, and it would seem that they couldn’t possibly fall any lower. Would you recommend then that borrowers obtain a rate-lock as soon as they begin the process of shopping for a mortgage?"

Two days after receiving this letter, rates dropped another 1/8 percent! Nonetheless, the writer’s major point, that at current rate levels there is much greater potential for rate increases than rate decreases, is valid. And that is a good reason for locking ASAP. But it is not the only reason, as indicated by this reader.

"While comparing two lenders, the first lender sent me the GFE (Good Faith Estimate) and TIL (Truth in Lending Act disclosure) and locked us immediately upon receiving the memorandum of terms of the house purchase. The second lender gave us a rate quote via e-mail that was 1/8 percent less than that of the first lender for the same lender fees, so we canceled our lock with the first lender.