Once you’ve decided on a lender and a mortgage that suits your needs, you should request a lock-in, or rate commitment. This is a lender’s promise to hold a certain interest rate and number of points for a specified period, often 30 to 60 days. Sometimes you can lock in only the rate and let the points “float” or move up and down with the market. Depending upon the lender, you may be able to lock in when you apply for the mortgage, during processing, when it gets approved, or at some later date.
The benefit of a lock-in is that it protects you against rate increases while your application is being processed. Some lenders charge a fee for locking in (generally, the longer the guaranteed period, the higher the fee), but this may be refundable if you go ahead with the loan. Be sure to get the rate commitment in writing.
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