Purchasing your first home is an exciting and rewarding experience. To make the mortgage process smoother, consider getting pre-approved for your mortgage.

What is a Rate Hold?

When you get pre-approved, you secure a fixed interest rate for 90 to 120 days. This doesn’t lock you into a specific lender but protects you from potential rate increases while you shop.

Key Advantages of Rate Holds

1. Protection from Rate Increases

A rate hold ensures you receive a guaranteed interest rate for up to 120 days. This shields you from potential rate hikes. If rates drop during this period, you can still benefit from the lower rate.

2. Enhanced Financial Planning

Knowing your exact rate helps with budgeting and financial planning. It provides clarity on your monthly payments and helps you find a home within your price range. As a result, you can ensure future financial stability.

3. More Time to Shop

A rate hold offers peace of mind, allowing you more time to shop for the right home without worrying about fluctuating rates. You can explore different mortgage options and lenders without feeling rushed.

4. Stress Reduction

Rate holds alleviate stress from market uncertainties and rate fluctuations. After recent market turbulence, having a secured rate reduces pressure. If your rate hold expires, applying for a new one is simple.

5. Securing a Competitive Rate

While current interest rate increases are unlikely, securing a favorable rate now can save you money in the long run. Locking in a good rate can be beneficial if market conditions change.

Summary

Rate holds offer peace of mind, financial security, and the ability to make informed decisions when entering a mortgage agreement. They are particularly useful in fluctuating interest rate environments or when delays in finalizing a mortgage are expected.

Contact Us for More Information

If you’re looking to buy a home or need more details about rate holds and the mortgage process, contact Elena at 647-945-3681 today.