You don't want it to expire before escrow closes, particularly if rates are then on their way up. Rates are flat and stable now, but approval could be weeks away and anything can happen by then. Shop around for both the terms of the lock contract and its cost. Others might charge the fee at settlement. The fee might be a flat fee, a percentage of the mortgage amount, a fraction of a percentage point or a higher interest rate.
Some lenders offer the service at no cost.
Comparison shop for loans Internet-based mortgage brokers have generated a windfall of mortgage discounts from a quarter to a half percentage point by automating the loan process and cutting out the traditional cost of the middleman. Don't limit shopping around to Web surfing, however. Examine rates from several individual lenders' loans and and use a broker or two to sift through hundreds of loans from dozens of lenders. Brokers generally offered us the best deals, and were better informed and more attentive than bankers. Also don't forget to compare points, charged in addition to the interest rate as a cost to borrow money.