APM BLOG

Your home is more than a property. It’s where birthday candles were blown out and holiday memories were made. When it’s time to sell, you want the full value of your home. 

PreLock is a seller rate lock program that gives sellers a new advantage. American Pacific Mortgage will lock in a discounted starting interest rate* for your future buyer’s home loan. Rather than slashing your asking price, you can offer something even more valuable: certainty and affordability on their mortgage loan.

Adapting to the Rising Rate Market

Rising interest rates have created challenges for home sellers. With each uptick in rates, mortgage payments can increase dramatically for buyers. This shrinks their purchasing power and means there are fewer qualified buyers in your area. 

For example, a buyer who qualified for a $400,000 home a year ago might only qualify for a $350,000 home today, all because of higher rates. Fewer buyers mean more days on the market and steeper competition between homes for sale. This puts you as a seller under pressure to lower your purchase price.

While waiting for rates to drop might seem like an option, the reality is that timing the market rarely works. Instead you can take control with a proactive approach.

How the Seller PreLock Program Works

At its core, the Seller PreLock program removes one of the biggest barriers buyers face today: high interest rates. Instead of letting rising rates limit your pool of potential buyers, you take control by offering a powerful solution: locking in a discounted starting rate* that works in your favor and helps your home stand out.

The Seller PreLock program is straightforward:

1. You decide how much to contribute toward buying down the buyer’s rate (typically 2% to 3% of the sale price), and pay the PreLock fee of $995* for APM to reserve the forward lock ahead of finding your buyer.
2. This secures a forward rate lock, creating a discounted starting rate* for your future buyer.
3. The loan amount and loan terms are determined when a buyer applies.
4. Your loan officer helps manage the process and ensures a smooth transition.
5. To qualify, the buyer must meet minimum credit score requirements (typically 580).
6. The starting rate may be adjusted based on the buyer’s credit score and LTV.
7. The lock is valid for up to 90 days—if the lock expires before closing, standard rates would apply.

This program works with conventional, FHA, and VA loans, giving buyers flexibility while still providing the rate advantage.

Why Sellers Are Choosing Rate Locks Over Price Cuts

By offering a lower rate, APM is helping you solve the primary problem causing buyers to hesitate in today’s market. While your neighbors are considering cutting price—and neighborhood values—trying to attract buyers, you’re addressing the affordability concern directly at its source: monthly payments.

The advantages of offering a Seller PreLock to offer a lower rate to the buyer are compelling and strategic: 

• Stand out instantly: Your listing catches attention among similar homes because the lender is offering something valuable.
• Attract serious buyers: Rate-conscious buyers will prioritize your property over others.
• Maintain your asking price: Instead of dropping your price by $10,000 or more, you could contribute a smaller amount toward the rate buydown, bringing the effective payment down to the same level or lower than lowering the list price.
• Speed up the process: Rate certainty can accelerate home purchases and reduce the time between offer and loan closing.
• Reduce closing drama: With financing terms secured early, there’s less chance of last-minute issues with the purchase loan.
• Save on carrying costs: Faster sales mean you pay less in mortgage, utilities, and maintenance while waiting for buyers.

Plus, APM will refund your PreLock fee if you use us to finance your next home purchase within six months, offsetting some of your closing costs—a win-win. 

Boost Their Buying Power

Your future buyer receives significant advantages, too, which is why this program is so effective:

• Certainty in an uncertain market with a fixed-rate mortgage—or potentially favorable adjustable-rate mortgages (ARMs) if that’s their preference
• Lower monthly payments over the life of the loan
• More straightforward qualification process, especially for FHA loans or other specialized programs
• Ability to build home equity faster by potentially qualifying for a larger loan amount
• Protection from further rate increases during the homebuying process

Addressing and removing the fear of rising rates makes your home more attractive to serious buyers.

Real Example: How It Works in Practice

Consider this scenario: A seller lists their home for $400,000. Instead of reducing the price by $15,000 to $385,000 to attract buyers, they contribute 2.5% of the selling price ($10,000) to buy down the rate on the buyer’s mortgage instead.

The mortgage lender applies this contribution to reduce the buyer’s rate by approximately 1 percentage point. On a $360,000 conventional 30-year fixed-rate loan with a 10% down payment, this could save the buyer approximately $225 per month*, whereas lowering the sales price as noted above would reduce their payment by less than $100. The lowering sales price scenario not only increases their monthly payment commitment, it also increases the seller’s contribution. By pre-locking the rate discount, the payment is lower, the seller contribution is lower, and it comes with a significant psychological advantage.

For the buyer, these monthly savings are substantial. It’s equivalent to eliminating a typical credit card payment each month! Unlike a one-time price reduction, a lower rate continues to provide value throughout the life of the loan.

Take Control of Your Home Sale Today

In a market where buyers are hesitant and traditional selling strategies may fall short, the Seller PreLock program offers an intelligent and effective alternative to price reductions.

Ready to learn how this innovative approach can give you a competitive edge? Connect with a local Loan Advisor at APM today. We’ll walk you through the program details, help you determine the right contribution amount, and help position your home as the winning choice in your area.

* A discounted starting rate is offered by American Pacific Mortgage. Buyers will be required to apply and qualify, and the interest rate is subject to adjustment based on the specific buyer factors, terms, and conditions. This is not a commitment to lend. The PreLock fee is nonrefundable but can be credited toward a loan with APM within six months. Savings example assumes a 6.25% fixed rate (6.46% APR) conventional 30-year loan with a 10% down payment.