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why and when does my interest rate get locked you know everybody who is getting a home loan at some point wants to know the answer to this question and it's super understandable why people are interested in this they're worried about missing out on rape and today i've got tom hemmington with me hey tom thanks for joining us today thanks for having me john by the way tom is the loan officer that i refer to here in the phoenix metropolitan market and today we're going to talk about understanding how it is and when it is that the interest rate gets locked and people want to know about this because they're worried about missing out on a really good rate and there are things that need to happen before the rate can get locked but it really moves pretty quickly tom once you explain to us how the interest rate gets locked and when it gets locked sure so john i would say on on a purchase transaction uh the first thing that we start to work backwards from is what is our close of escrow date so you know on a new home new home construction or whatever and that might be six months out you find that they're not going to lock anywhere near the time of starting the loan application or the process but on a traditional transaction where you've got a 30-day closing i would say that within the first week we normally have all of our rates locked we we send the application out to the borrower we get the application and their supporting documents back probably have ordered the appraisal if an appraisal is required and we just kind of make sure we're all moving down the right path and that that everything looks good on that file and then we get rates locked sometimes though borrowers want to wait check it out they think it might get a little bit better and so we we just have that dialogue to see what what a borrower wants to do sometimes so it's a little less risky than putting it all black going a lot going to las vegas and and spinning the big wheel but i think a borrower needs to understand rates go up a lot faster than they go down and so uh too many times you find that you know you're too anxious or greedy to get that one extra eighth of a point john that that uh it's it's hard when you start chasing the raid up the hill because then you feel bad that you didn't just take what you had in hand so uh i'm always a bird in the hand more than two in the bush kind of guy so i try to how do i eliminate risk and how do i get myself in a spot where i feel comfortable and go from there and as you know there's a lot more to worry about or to there's a lot more to do as the loan progresses so you might as well just get that knocked out as soon as possible especially if rates are as good as they are right now you might as well just lock that in and if you'd like to know more about what happens next in the mortgage process just check out our playlist here and hey tom thanks for joining me today and helping everybody understand how and when to lock in their interest rate you guys thanks for joining tom and i today and we'll see you on the next one thanks john