Lock Your Mortgage Longer In December
Home buyers and refinancing households often ask mortgage lenders, such as NSH Mortgage, when they should lock in their mortgage rate, and for how long. If buying or refinancing is on your holiday to-do list, you may want to lock your mortgage longer in December. Federal holidays take their toll, causing a lot of offices to be short of help, due to employee vacations. Plan for an extended closing on your mortgage loan, and do what you can to speed it up. NSH Mortgage will help you lock your mortgage rate longer in December, as the holidays cause delay in home buying and other loan processes.
What Is A Mortgage Rate Lock?
A lock-in, also known as a rate-lock or rate commitment, is an agreement with NSH Mortgage to hold an interest rate on a mortgage loan for a certain period of time. Generally, unless your lender tells you your rate is locked, you’re in a “floating pattern”. Floating can be a risky proposition during the holiday season, especially this one which closely follows the U.S. presidential election. By locking in an interest rate, homeowners can avoid a larger mortgage payment than they expected when they applied for their loan. Further, mortgage lenders are obligated to offer a mortgage loan at an agreed-upon interest rate regardless of whether or not mortgage rates have changed. NSH mortgage always recommends to lock your mortgage rate longer in December,
The Long-Lock Mortgage Strategy During The Holidays
There are four federal holidays on which banks are closed November through January.
- Veterans Day
- New Year’s Day
When banks are closed, lenders aren’t likely to work on your file, resulting in longer turn times.
Mortgage rate locks are measured in calendar days, not business days. Locking for 30 days may only get you 20-22 business days in December. Employee time off affects your lock, too. Because the holidays are slower for lenders, mortgage companies allow their employees to take additional time off during these months, the day after Thanksgiving, Christmas Eve, and New Year’s Eve as examples.
Pile these “extra days” on top of Federal holidays, and the processing of your mortgage loan often slows to a crawl. Third-party service providers, like title companies, closing attorneys and appraisers, will often have less availability, too. The appraisal process is already a part of the mortgage process that can take a considerable amount of time. Lock your mortgage rate longer in December!
During non-holiday times, appraisals typically take 10-14 days to be completed. During the holiday season, it’s easy for appraisals to take an extra week. Appraisers are people too, and enjoy time off during the holidays just like everyone else.
Speed Up Your Closing During The Holidays
A faster closing means a shorter lock period. The shorter the rate lock period, the better the rate. For every 15 extra days on your lock expect to pay 125 basis points (0.125%) of your loan amount in additional fees. For this reason, it’s in your best interest to do everything you can to speed up the mortgage process.
Few things can slow your application process more than credit hurdles. You can get ahead of any potential credit hiccups by ordering a copy of your credit report before you begin the mortgage process. Should you discover any credit challenges that can’t be fixed quickly and easily, be sure to disclose the issues with your lender.
NSH Mortgage Will Lock Your Mortgage Rate Longer In December
A good mortgage lender can offer advice and help save you time and resources with a couple of credit repair tips. If necessary, your lender may even be able to expedite the results of your credit repairs via a rapid re-score giving your credit scores a quick boost. It’s no secret that lenders require paperwork to obtain a mortgage loan.
Generally, gathering all of the documentation your lender has requested can be one of the lengthiest aspects of getting a home loan. One way to get ahead of this process is by asking your lender what items will be needed ahead of time. Fortunately, most lenders will request similar documentation that pertains to your income, assets, and credit, such as the following items.
- 60-day history of bank accounts
- Tax returns, if self-employed or running a side business
Also, using an experienced loan officer, such as NSH Mortgage, can be very helpful when it comes to expediting your mortgage closing process.
An inexperienced lender may inadvertently slow the process by not requesting the necessary documentation for your particular loan and situation. As such, don’t be afraid to ask your lender for knowledge and experience-related questions.
Lock Today’s Mortgage Rates Longer?
The holiday season is here. Ask NSH Mortgage, your lender, how to lock your mortgage rate longer in December.