If you are making offers on multiple properties, you may wonder whether you can lock a rate without a specific contract. Some lenders offer pre-lock programs that let you secure a rate before you have a signed purchase agreement.
Here is what you need to know about rate locks when dealing with multiple offers.
Pre-Lock Programs
Some lenders offer rate lock programs that allow you to lock a rate before you have a specific property under contract. These are often called rate locker or float-down programs. They let you secure today's rate while you search for the right home.
Pre-lock programs typically require a fee or a slightly higher rate than standard locks. They also have time limits, usually 30 to 60 days, so you need to find a home and get under contract within that window.
Locking After a Contract
Most lenders require a signed purchase contract before they will lock a rate. The contract provides the property details, purchase price, and expected closing date that the lender needs to finalize the lock.
If you are making multiple offers, the standard approach is to wait until one is accepted and then lock the rate immediately. This ensures you get the best available rate at that time.
Making Offers With Confidence
Even without a locked rate, you can make offers with confidence if you have been pre-approved and know your budget. Your pre-approval letter shows sellers that you are a qualified buyer, and you can lock the rate once your offer is accepted.
Bottom Line
Some lenders allow pre-lock programs for multiple offer situations, but most require a signed contract. Ask your lender about options before you start making offers.
