What are the current market trends?
By taking a look at bond market activity and current economic news, you can get a general idea of how interest rates will be impacted. In a rising market it is best to lock a rate as early in the lending transaction as possible. If interest rates are in a downward trend you may want to watch the market and lock when you feel the rate is acceptable. But keep in mind that interest rates generally move up faster than they move down; there is a risk in waiting for the “perfect” rate that may never come around. The bottom line is, when a good interest rate is available, it is best to secure it. 3 Get it in writing. Once you have decided to lock your rate, make sure you obtain a lock-in agreement in writing. Verbal agreements are difficult to prove in case of a dispute. Read your lock-in agreement carefully and understand your lender’s terms to avoid confusion and disappointment. Understanding the lock-in process and your lender’s policies, and especially having your lock-in agreement in wri
