Lock Period

See: 144a.

Today might be the first time we’ve said we’re living the dream and actually meant it. After years of scrimping, saving, and researching, we are on our way to get pre-approved for our very first home loan. We can hardly contain ourselves, especially since we know that whatever we and our mortgage lender come up with, the terms of that loan are locked in and unchangeable for the next 60 days.

This happy little chunk of time is known as a “lock period,” and it serves multiple functions. First, it protects us against changes (like in interest rates) that could occur before our actual closing date and negatively impact the loan amount. Second, it gives us time to get everything we need sorted and organized so we can push this loan through and move into that starter home. And third, it gives the lender time to process our application and associated paperwork.

One thing we should note: in this example, our lock period is 60 days, but that isn’t always the case. Most of the time, we’ll see lock periods of either 30 or 60 days, but they can vary by state and by lender, so we should be sure to find out the deets on our specific situation.