Home Buying Process
Lock and Shop Mortgage Rate Strategy
Your Roadmap to a Confident Home Purchase
Whether you’re buying for the first time or the fifth, having a clear understanding of the home buying process makes all the difference.
My comprehensive Home Buyer Overview walks you through every stage—from financing and offer strategy to inspections, closing, and beyond—so you can navigate your purchase with clarity, confidence, and fewer surprises.
Worried about rising interest rates? You’re not alone. In this video, Adam explains the “lock and shop” strategy—an option that allows certain buyers to lock in a mortgage rate before finding a home. If you’re risk-averse or just trying to stay ahead of rate hikes, this is an essential tool to understand. Ideal for buyers planning to purchase in the near future while rates are trending upward.
What You’ll Learn in This Video:
What a “lock and shop” is and how it works
Which loan types typically qualify—and which don’t
Why your quoted interest rate isn’t guaranteed until you lock
When paying a small fee to lock your rate makes sense
How to protect your purchasing power in a rising-rate environment
What’s on the market now? Customize your home search.
Ready to start the process? Schedule a brief conversation.
Adam Tabaka (00:00):
Alright, let’s say that you’re in an environment where interest rates are starting to rise, or there are indicators out there that rates are about to start rising in the coming weeks and months. What can you do about that?
(00:12):
Now, one option you might have available to you, depending on your loan type, is what’s called a lock and shop. Now, typically the interest rate that you are quoted by a lender before you submit your mortgage application and receive a loan estimate – that interest rate is hypothetical, it’s theoretical; there’s no guarantee that that’s the rate that you’re going to get. With a lock and shop, what you’re doing is you’re actually paying a fee upfront, a small fee generally, but a fee nonetheless to lock in today’s interest rate for a term of 30, 60, or 90 days.
(00:48):
Now, not all types of financing are going to qualify for this: Non-QM loans will not qualify generally. Jumbo loans generally will not qualify. FHA and VA financing generally do not qualify. Typically, this is only going to be applicable to conventional conforming loans.
(01:06):
So if you’re in an environment where rates are expected to rise in the near future, or maybe you’re just risk averse, you might want to consider lock and Shop.
(01:16):
Want to learn more? Check out the Home Buyer Overview below. Ready to get the process started? Give me a call or schedule time down below in the link. Until next time, take it easy.
Your Roadmap to a Confident Home Purchase
Whether you’re buying for the first time or the fifth, having a clear understanding of the home buying process makes all the difference.
My comprehensive Home Buyer Overview walks you through every stage—from financing and offer strategy to inspections, closing, and beyond—so you can navigate your purchase with clarity, confidence, and fewer surprises.