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What's a Rate Hold?

Pre-approval is a term commonly used when it comes to mortgages.  Real Estate Agents often request that a client be pre-approved before they start shopping for a property.

As a mortgage broker our job is to pre-qualify the client, another way of saying pre-approved.  We make sure the application and the math all makes sense before we submit to a lender.  When we submit an application to a lender, without an offer on a property, we are submitting for something called a rate hold
rate hold is a hold on current interest rates for 120 days.  This means you must complete and take possession of a property before the rate hold expires.
rate hold is not an approval in that the lender still has to review and approve the property once there is an accepted offer.
With rising interest rates, if you are considering buying in the coming months, please reach out to me so that I can assist you by getting you pre-qualified and submitting a rate hold.