Quotes & Locks

A quote is a quote.

A lock is a lock.

What Is The Difference Between A Quote And A Lock?

That is perhaps the most important question you need to know the answer to before submitting your information for your free mortgage quote at the Mortgage Marketplace. A quote is nothing more than a loan officer saying “if you were to lock right this second, this is what your scenario would look like”. A lock means that the loan officer can actually deliver the proposed scenario because the interest rate has been “locked” with the lender for a set period of time.

How Long Is This Quote Good For?

When you get a quote from one of the lenders at ZMM, how long is the quote good for? It depends. It might be good for days - or it might be good for 15 seconds after the loan officer submitted his quote. It all depends on the market, but it is important to realize that many times rates change multiple times per day.
This means that if you are looking at a quote from a lender that is 3 days old… it may or may not still be relevant and accurate.
Which is why one of the first questions you should ask your potential loan officer “when can I actually lock my rate?”

When Can You Lock?

Each lender has different lock policies, which is why you want to ask the loan officer up front. Some lenders let you lock for free, others charge a fee. Some lenders let you lock at time of phone application, some require that your signature be on the initial disclosure packet.
When the lender lets you lock in the process is not near as important as it is that you are just aware of when you can actually lock. Being aware gives you the power, whereas not knowing leaves more of an opening to chance something out of your control and bad happening.

When Is The Best Time To Lock?

The best time to lock is ________________. Insert whatever you want there. Once you have your application in, chances are that your loan officer will advise you whether to lock or “float” your rate. Regardless of whether you choose to float or lock, be aware that just about every expert I know is wrong about 50% of the time.
The most important thing to recognize is that by asking the question of “when can I lock?” you will increase the chances of your expectations being aligned with reality rather than wondering why your quote says 4.5% from 5 days ago and your loan officer now wants to lock you in at 5.25% because he says that “rates moved”.