Lock and Shop in Florida: Fixing Your Rate Before You Find the House
Lock and shop Florida programs let a pre-approved buyer lock a rate before going under contract, then shop with the rate protected. It costs a fee or a premium, and it has a clock.
Educational content only. This article is for informational purposes and does not constitute financial, legal, or lending advice. Loan programs, rates, and eligibility requirements change frequently. Consult a licensed mortgage professional before making any borrowing decision. Mortgage Capital | NMLS# 1859012 | Licensed in Florida.
Lock and shop Florida programmes let a pre-approved buyer lock a rate before finding a home, then shop with the rate protected for a set period.
It costs a fee or a slight premium and the clock runs while you look. Our guide to rate locks in Florida covers the standard lock.
How it works
Get fully pre-approved.
Lock a rate on a loan amount and programme without a property.
Shop for 60 to 90 days, sometimes longer.
Once under contract, the lock attaches to the property.
A float-down is often included.
Why it exists
Rising-rate markets, where a buyer who takes a month to find a home loses purchasing power.
See our guide to how mortgage rates are set in Florida.
Long searches in competitive areas.
New construction with distant closings.
See our guide to new construction mortgages in Florida.
What it costs
A fee, refundable at closing at some lenders.
Or a rate slightly above the day's standard lock.
See our guide to discount points in Florida.
Longer periods cost more.
Compare to a standard lock once under contract.
The float-down
Most lock-and-shop programmes let you take a lower rate once if the market drops before closing.
See our guide to float-down rate locks in Florida.
Read the threshold and the terms.
One reset, usually.
It turns the lock into insurance rather than a bet.
The clock
The period runs from the lock date, not the contract date.
A slow search burns days.
Extensions cost fees.
See our guide to closing date delays in Florida.
Florida closings need buffer beyond the contract date.
Loan amount and programme
The lock is for a maximum amount and a programme.
Buying a cheaper home is fine; a more expensive one may need a new lock.
Switching from conventional to FHA breaks it at most lenders.
Decide the programme before locking.
See our guide to FHA versus conventional in Florida.
Property surprises
A condo that fails review or a home that fails insurance breaks the deal, not the lock.
See our guide to condo questionnaires in Florida.
Some lenders allow the lock to move to a replacement property.
Ask before locking.
A portable lock is worth paying for in Florida.
When it pays
Rates rising and a search expected to run more than a month.
See our guide to the Fed and mortgage rates in Florida.
A buyer at the edge of qualifying, where a rate increase would cut the approved amount.
See our guide to pre-approval expiration in Florida.
A builder contract with a long completion.
When it does not
A short search in a flat or falling market.
The fee or premium buys nothing.
A float-down softens the loss but not the cost.
Most buyers with a home already in view should lock normally.
Timing decides it.
Sellers and the locked buyer
A buyer with a locked rate is a certain buyer.
See our guide to what happens at closing in Florida.
The pre-approval letter can say so.
In a multiple-offer situation it is a small edge.
Mention it.
Refinances
Lock and shop is a purchase tool.
Refinances lock when the borrower decides.
See our guide to rate-and-term refinancing in Florida.
No search to protect.
A standard lock with a float-down covers it.
Reading the agreement
Lock date, expiry, rate, points, maximum loan amount, programme, float-down terms, extension fees, portability, refund terms.
See our guide to rate versus APR in Florida.
The CFPB explains rate locks generally.
Get it in writing.
Keep it.
Lender availability
Not every lender offers it.
See our guide to mortgage brokers versus banks in Florida.
Terms vary widely between those that do.
A broker compares programmes.
Ask before you assume.
A worked scenario
A buyer pre-approved at the edge of the budget in a rising-rate month.
They lock and shop for 90 days with a float-down.
Rates rise; they find a home in week six and close at the locked rate.
Without the lock, the approval would have shrunk below the price.
The fee was the cost of keeping the house.
Extending the period
Most programmes allow one or two extensions for a fee.
Extensions bought early cost less than a relock after expiry.
A relock after expiry uses the worse of the original and current pricing.
Watch the calendar in week six.
Ask the lender for the extension schedule in writing at the start.
Combining with a builder incentive
Builders often offer a locked rate through their affiliated lender.
Compare it to an outside lock-and-shop on the same day.
The builder's rate may be bought down with incentive money you could use elsewhere.
See our guide to builder versus independent lenders in Florida.
Take the better total package, not the lower headline rate.
Where to start
Get a full pre-approval and decide the programme and maximum amount.
Ask for the lock-and-shop terms in writing, including float-down and portability.
Then start a conversation and we will decide whether to lock now or when you find the home.