Follow These Tips To Bag A Great Mortgage Deal Despite The Coronavirus Outbreak
If you are planning to acquire a mortgage during the coronavirus outbreak, then chances are you are experiencing more stress and anxiety than what you’d typically feel if things were not so crazy.
Two significant challenges have surmised amid the pandemic. One, the mortgage rates are at an all-time high. Two, closures are taking more than their usual fair share of time as things are far more complicated with lenders because of the ongoing practice of social distancing.
Thankfully, numerous lenders are offering quick solutions by stretching their arms and extending the mortgage rate lock times. Due to this, many borrowers can get a fair deal, and hold onto it even if the lender takes time in processing loan applications. Although some lenders are providing this service for all kinds of mortgages, there are a few who are open to home loans only.
To make life easier for you, here are some tips on how you can get a great mortgage deal even though the coronavirus is still around:
Find out how the rate lock periods work
Even if things were normal, mortgage rates would still fluctuate daily, so there’s no need to worry about that. At the time your loan application is approved, you can lock in the rate which suits your portfolio.
Through this noble approach, even if there is a change in the interest rate, you will only have to pay the price you agreed on before. But although the rate locks are an option for borrowers and are beneficial in many cases, they can still come with many risks—the least being that you’ll miss out on an excellent rate if you lock in before the rate decreases.
Avail extensions during the pandemic
Some lenders are extending borrower’s rate lock period without any additional cost. While this is the kind of security that borrowers need right now while the market is uncertain, you should note that not every lender approves of this solution. The ones who are providing the facility have different limitations and policies.
Ask nearby lenders about their policies
If you are going to buy a property or financing a house, you must ask your lenders whether or not they are stretching their rate lock period. There is no way that lenders are going to open up about that topic on their own, so you have to ask it outright.
Just bear in mind that not every other lender is providing the customers with the facility to extend a rate lock extension to help assist you during the coronavirus. This reason is why you need to be thorough in your approach and have some patience.
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