I know when I got my first client pre-approved for a mortgage loan, I was very excited to think about the very first sales incentive which I was going to receive, but all excitement was gone away when I knew that I could not get the money till it was not paid by the client. Yeah, because that pre-approval got a grace period which is known as Rate Hold and it may take 120 days to close the mortgage deal. Anyway rate hold if held my reward for so long to come to me but on the other hand lock in mortgage rate gave my client a best possible interest rate option with plenty of time to search for an ideal home of his choice to start his mortgage loan, and I felt really happy with my clients’ satisfaction which passes all the excuses.
A shifting interest rate environment may cause an unpredictable situation that leads anyone to think about to adopt an option of mortgage rate hold or lock-in mortgage rate, to get the best rate possible while looking for the best home of his or her choice, while pre-approval means that you’ll know how much you can afford to spend on the home.
There are various ways to enquire and apply for your mortgage pre-approval loan with a rate hold option like you may apply through a bank, a mortgage company or through a mortgage broker, choice is yours anyone of these can assist you in providing the best financing options for your borrowing need. If fixed mortgage rates rise during your rate hold period that is up to 4 months or 120 days, you’ll be all ready protected by the rate hold and if it falls, you’ll have access to the lower rate the competitive interest rate to adopt for your mortgage loan. Moreover, with a lock-in mortgage rate, you’ll have peace of mind about your mortgage rate while you look for the home that suits you the best.