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Old 02-27-2018, 10:17 AM
 
17 posts, read 9,119 times
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Sorry for my ignorance here. But i need some quick advice

Is mortgage rate lock same as pre-approval for a loan? Or are they different?

Many Thanks for your time
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Old 02-27-2018, 11:52 AM
 
17 posts, read 9,119 times
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any advice?

also what is a reliable site to track daily mortgage rates? I just want to know if they increase/decrease compared to the previous day
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Old 02-27-2018, 11:54 AM
 
Location: Rochester, WA
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Yes, they are very different things. A preapproval just means you *look* like you'll probably qualify for a loan.

A rate lock is at least a preliminary commitment for a loan at particular terms, with a particular interest rate. Most have strict time limits before they expire.
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Old 02-27-2018, 01:34 PM
 
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Preapproval simply means that the bank is willing to lend you loan but doesn't guarantee you the interest rate. Once you have a rate lock, that interest rate would be good for certain period of time, and after that time pass, you may not get that interest rate again, and the interest rate is usually higher as you wait longer.
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Old 02-28-2018, 05:36 PM
 
Location: Boise
659 posts, read 657,034 times
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A lock is when you are guaranteed the rate for a particular time, 15,30,45,60 days etc...

As previous poster said, pre qualification is a conversation and the Loan Officers says you look good. It ok for can i do this, but you will want to go one step further and get a full blown pre approval as soon as possible. That involves providing W2s, bank statements, tax returns fo self employed or commissioned, and having your credit run.

A pre approval is a much stronger offer than one with a pre qual letter.

Choose a good LOCAL lender, those online sources are notorious liars. They hook you in whit the appraisal or lock fee and then you are trapped when they inevitably find a reason to raise the rate. Lending Tree actually counsels their lead buyers to say anything to get the deal, then price it later to meet profit goals. So sad.

Good luck with your mortgage!
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Old 03-06-2018, 10:55 AM
 
1,515 posts, read 1,093,954 times
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God I remember losing sleep over my mortgage rate as I was getting ready to lock. We got 4.1% and I ended up doing a "no cost" refi a year late at 3.5% anyway..

One little word of advise is a 30 year fixed rate is going to slightly lag behind the 10 year treasury yield. Right now the yield is sitting at 2.875 and mortgages seem to be around 4.5-4.625% according to wells fargo's little estimator. If you keep an eye on the 10 year yield as you're getting ready to lock and you see the 10 year yield suddenly start dropping you may want to hold off of locking your rate for a day or 2 as the mortgage rates will likely come down as well. If you're getting close to the point where you really need to lock your rate and you see the 10 year start jumping up or going over 2.95 you better get on the phone with your broker and lock that bad boy up.
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Old 03-06-2018, 11:00 AM
 
1,515 posts, read 1,093,954 times
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Oh.. and there are also things called like "step down locks" or something. Ask your broker, it basically means if you were to lock at say 4.5% and within that 30 day period something major happens and the treasury yield starts tanking and taking mortgages with it, the bank can give you a lower rate. Now in order for that to happen it needs to be a pretty substantial move, like you lock at 4.5 and suddenly the average rate is 4.125 and the bank can move you down to 4.25. They'll always have to move you at least 1 little step above the current rate.

Its basically the same way "no cost" closing works.. when we did our refi I could have got like 3.375% if I had paid all the closing costs and whatever, probably about $7k. But I was more than happy with 3.5% and didn't have to put any money down.

Ask your mortgage broker if they offer anything like that.. but honestly I only see rates continuing up
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