You got pre-approved at 6.5 percent. Three days later, rates dropped to 6.2 percent. You’re wondering if you should wait. Or if rates are about to spike again. Here’s what actually happens with rates and how to think about them.

What Moves Mortgage Rates

Mortgage rates aren’t set by your lender. They’re tied to the bond market, the Federal Reserve, inflation, and economic data. When the Fed raises rates, mortgages go up. When inflation cools, rates typically drop. When the economy looks shaky, investors buy bonds, rates drop. When the economy is hot, investors sell bonds, rates rise.

You can’t predict rates. Nobody can consistently. Rick watches them daily, but even experts don’t call the direction right every time.

Rate Locks Explained

When you lock a rate, you’re saying I want 6.5 percent and I want it guaranteed for the next 30 days. Your lender holds that rate. If rates spike to seven percent tomorrow, you’re still at 6.5 percent. If rates drop to six percent, you’re still at 6.5 percent.

Rate locks typically last 30 to 60 days. Most loans close within that window, so your lock protects you until closing.

The Rate Lock Tradeoff

Locking early gives you peace of mind. You know your payment. But if rates drop, you’re stuck paying higher unless you renegotiate — which sometimes costs a fee.

Floating your rate means you don’t lock. Your rate changes daily until you lock. If rates drop before you lock, you get the lower rate. If rates spike, you’re paying more.

Most borrowers lock when they’re comfortable with the rate and ready to move forward. Rick recommends locking once you’ve got an accepted offer — you know you’re closing.

Rate Locks and Timeline

Your rate lock is typically 30, 45, or 60 days. Choose based on how fast you think you’ll close. Pre-approval to closing is usually 30 to 45 days. Lock accordingly.

If your lock expires before closing, rates reset. That’s a risk. But locking too long costs slightly more in rate.

Historical Context

Rates have moved from eight percent down to five and a half percent in the last year. They’ve also spiked overnight. The point: don’t chase rates. Lock something reasonable and execute your purchase.

Rick locks your rate when you’re ready to move forward. Once locked, focus

Self-Employed and 1099 Income — How Rick Gets You Approved

You’re self-employed. You make good money. But your tax returns don’t reflect it because you take every deduction available — home office, vehicle, equipment, meals.

Traditional lenders look at your adjusted gross income on your tax return and say you don’t qualify. You know you can afford the payment. They don’t care.

Rick approves self-employed borrowers constantly. Here’s how.

The Self-Employed Problem

W2 employees are simple: income is verifiable, stable, easy. Self-employed income is messy. You file profit and loss statements. You take deductions. Your income on paper might be 50,000 dollars but your actual take-home is 80,000 dollars.

Traditional lenders use your tax return income. Rick uses bank statements and P and L statements instead. He wants to see actual deposits into your account over the last two years.

How Rick Qualifies Self-Employed Borrowers

He pulls two years of tax returns and two years of bank statements.

He subtracts reasonable operating expenses.

He subtracts reasonable operating expenses. He calculates what you actually keep. That number — your real income — is what qualifies you. Not the reduced income on your tax return. Documentation You’ll Need Two years of complete tax returns including schedules. Two years of business and personal bank statements. Profit and loss statement for the current year if available. CPA letter explaining income if helpful. Business license or 1099s showing you’re self-employed. It’s more paperwork than a W2 employee provides. But it’s documentation that actually reflects your real income. Common Self-Employed Scenarios Contractor. Consultant. Freelancer. Small business owner. Real estate professional. Anything where your income varies or you control your deductions. The Numbers Let’s say you’re a consultant. Your tax return shows 55,000 dollars in net self-employment income. Bank statements over two years show 120,000 dollars in deposits. Operating expenses average 40,000 dollars a year. Your actual income: 80,000 dollars. Traditional lender qualifies you on 55,000 dollars. Rick qualifies you on 80,000 dollars. That’s the difference between a no and a yes. Timing and Approval Self-employed approval takes slightly longer because there’s more documentation to review. But once Rick has your statements and returns, underwriting moves fast. Your Next Step You’re self-employed. You qualify. Rick Cogswell structures your income documentation and gets you approved for more than a traditional lender ever would. Chat with me below or call 954-734-4440, and we’ll map out exactly what works for your situation. Or visit www.RickCogswell.com to get started right now.