And why do I want one?
A Rate Hold is the amount of time a lender will guarantee a loan’s interest rate. If you get pre-approved for a mortgage (today at a certain rate), that rate would be held for a given period of time, usually between 60 and 120 days.
This means that even if rates go up, you are safe with the rate at which you were pre-qualified. What if rates go down once you have had a rate held? No problem! If rates go down then we will have you re-approved at the new lowest rate. Keep in mind that only the amount (or less) that you applied for is held. Should you need to increase the amount you wish to borrow you will be subject to a new rate. We will review all of the details with you in advance of your rate hold.
It’s always a good idea to get pre-approved for your mortgage well in advance of purchasing a property. When you have a rate held you can shop for that new home without the worry of possible increase in rates.