In the past, we discussed how to be a smart consumer when shopping for a St. Louis mortgage company or individual St. Louis mortgage lender. Some of the essentials to consider are the interest rates, lowest points, upfront charges and how to calculate them. Once you find the most favorable terms for your needs, work your way through the application process and get to the settlement stage, the real consideration is whether or not you will receive what you’ve bargained for. Will you find that the rates have changed, which automatically ups your cost structure?


That’s where a lock-in holds value to you as a future homeowner. A lock-in – also commonly referred to as a “rate-lock” or “rate commitment” – is a lender’s promise to hold a certain interest rate and number of points for you while your loan application is being processed. The loan application process may take several weeks (or longer) to prepare, document and evaluate. During this time period, mortgage costs are likely to fluctuate. However, if your interest rate and points are locked in, you are protected against rate increases during the application process.


While having a lock-in sounds like a no-brainer, there is a small risk. You may run into an instance where rates decrease. Therefore, a lock-in may prevent you from taking full advantage of any price drops. Depending upon your lender, you may have the opportunity to lock in a lower rate in the event that one becomes available during the application period.


As a future homeowner, keep in mind that the St. Louis mortgage lenders at USA Mortgage have your best interests in mind. In efforts to bring you that much closer to your dream home, we do our best to process loan applications quickly and provide the lowest rates possible. While St. Louis mortgage rates change by the day, our customer service remains constant. Contact us today to learn more about how to secure a lock-in for your home loan.