Locking in the best mortgage interest rate is extremely important. Most lenders establish a rate commitment by guaranteeing an interest rate for buyers while they look for a home. This guarantees buyers a specific rate and term on their mortgage loan even if rates rise while they are shopping. Those who don’t lock in a rate may find that interest rates have risen and face a significant decrease in the amount they qualify for or how much home they can afford.
Most lenders require that borrowers receive a full pre-qualification, which will guarantee most rates for 120 days from the submission date. Pre-qualification means that a buyer’s financial information has been reviewed, and a lender has determined the maximum mortgage amount they can afford. There are also other benefits of mortgage pre-qualification. Offers made from pre-qualified buyers are often considered stronger and allow more bargaining power during the negotiation process. Pre-qualification also means the buying process is typically much quicker, as there are fewer potential complications that tend to arise.
Getting pre-qualified for a mortgage, and subsequently locking in a rate, is a fairly straightforward process. The buyer must provide the lender with documents required for mortgage approval. Then the lender will guarantee the approved buyers in obtaining a home loan with the agreed rate when the purchase is finalized.
Mortgage Alliance Authorities has a highly qualified staff of Licensed Mortgage Specialists in Ontario and surrounding areas to serve you. Unlike other traditional institutions, we come directly to you and help you throughout the entire home buying process. We understand and value our clients time and convenience, and strive to provide the best possible customer service.