When you feel comfortable with the loan that you have discussed with your mortgage consultant it is time to think about locking your loan. A rate lock is a lender's promise to hold a certain interest rate for you for a specified period of time while your loan application is processed. The advantage to locking in a rate is that you do not have to worry about rate increases while your application is being processed. The disadvantage is that a rate lock will prevent you from getting a better rate if they decrease.
Rate lock periods vary from lender to lender. Standard rate lock periods are 10, 15, 30 and 45 days. In some circumstances, such as in the case of a new construction loan it is possible to lock months in advance (but typically costs money to do so and is not often taken advantage of).
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