Quick answer
A rate lock is a lender’s commitment to hold your quoted pricing for a set number of days while the loan closes. It protects you from market movement, not from changes in your file: if the appraisal, rent, credit or loan structure changes, the pricing is recalculated for the new scenario.
What a lock holds
Investor loan pricing is repriced by wholesale lenders as the capital markets move — sometimes more than once in a day. A quote you receive is a snapshot of that pricing applied to your scenario. A rate lock is a commitment from the lender to hold that pricing for a defined number of days while the loan is processed and closed.
What is locked is the pricing for a specific set of loan characteristics: loan amount, LTV, credit score, DSCR, property type, prepayment structure, payment type and so on. The lock protects you from the market moving. It does not protect you from your own file changing.
When locks are typically available
Most wholesale lenders will lock a DSCR loan once there is a complete application and, for purchases, a signed contract on a specific property. Some lock earlier, some later. Locking before key facts are verified carries the risk that the verified facts land in a different pricing tier.
Lock periods and extensions
Locks come in set lengths. Longer periods generally cost more because the lender is carrying market risk for longer. Choose a period that realistically covers the appraisal, title work, entity documents and closing — DSCR files with LLCs, short-term rental income or multiple properties often need more time.
If closing slips past the lock expiration, you can usually extend for a fee, or the loan may be repriced at current market terms, whichever the lender’s policy allows. A realistic lock period chosen up front is often cheaper than an extension later.
What can change a locked price
Each of these changes the scenario the lock was based on, so the pricing adjusts to the new scenario even though the market component stays locked.
- The appraisal comes in lower than expected, raising LTV into a different band
- The appraiser’s market rent is lower than the lease, reducing DSCR
- The credit score used changes, for example after a re-pull
- You change the loan amount, prepayment structure or payment type
- The property type is reclassified (for example, a unit count or condo issue)
How we approach locking
Before recommending a lock, we confirm the inputs most likely to move — value, rent, credit — and talk through the lock period against your closing timeline. We explain what is and is not protected, in writing, so that a locked quote means what you think it means.
Rate lock questions
Can I lock a DSCR loan before I find a property?
Generally no. Locks are tied to a specific loan on a specific property, so most wholesale lenders require a property and a complete application first.
If the market improves after I lock, can I get the better price?
Some lenders offer a one-time float-down or renegotiation under specific conditions, often for a cost; many do not. Ask before you lock, not after.
Is a quote the same as a lock?
No. A quote is an estimate at a moment in time. Until the loan is locked, pricing can move with the market.