In the face of the ongoing uncertainties generated by the coronavirus pandemic, the real estate sector continues to remain resilient. As evidence, total existing-home sales surged by 20.7% since May 2020, and overall sales are down by only 11.3% compared to the same period last year. The question arises, "How is this happening?" Amidst the challenges of predicting future trends, the real estate industry has rapidly evolved to accommodate a new era of homebuying — one that is virtually engaged.
Thanks to virtual open houses and digital meetings, buyers and sellers are now able to interact smoothly with their real estate agents and lenders, ensuring a near-identical experience to traditional buying processes. Additionally, it is noteworthy that for the first time in half a century, mortgage rates have dipped below 3%. Consequently, despite the prevailing unpredictability, the latter half of 2020 might be an opportune time to consider becoming a homeowner*.
If you're hesitant about purchasing, you're not alone. A significant number of potential buyers, even prior to the pandemic, prefer to contemplate their choices and "shop" for the right mortgage. In response to this, we provide a flexible solution known as RateSafe, which adjusts to your timeline to align with your objectives and requirements more effectively.
Lock, Shop, and Own with CrossCountry Mortgage RateSafe serves as an interest rate "lock-in" feature, ensuring that the rate offered to you remains constant for up to 120 days as you search for the perfect home. With RateSafe, you gain the certainty of knowing your affordability, free from the worries of a fluctuating market.
Details:
- 120-Day Lock-In Commitment
- Minimum Credit Score: 620
- Must Occupy Home as Primary Residence
- No Manufactured Housing Permitted
- Acceptable Properties: Condos, PUDs, 2-4 unit housing
- No Geographic Limitations
- Eligible for Conventional, FHA, and VA loan programs
Frequently Asked Questions Q. Which factors influence my interest rate?
A. Admittedly, several market factors that impact your interest rate are beyond your control. However, there are methods to improve your rate independently.
Q. If interest rates drastically decline after I lock, will I incur extra costs to reduce my rate?
A. With RateSafe, you're allowed a one-time opportunity to "float down" your interest rate when you submit your fully signed purchase contract. Please consult your Mortgage Advisor for additional information on this feature!
Q. Once the rate is locked, do I have the full 90 days to find a home?
A. Not exactly. Similar to a standard rate lock program, the lock period must extend through the closing process. For a RateSafe lock, a fully signed contract must be obtained by the 45th day.
This stipulation affords you one and a half months to find your dream home, free from the anxiety of increasing interest rates diminishing your purchasing power. Once your contract is submitted, the remaining 45 days cover the time required for a home inspection, any necessary renegotiations, an appraisal, final underwriting, and closing your loan.**
Q. Are there any other advantages to the RateSafe program aside from rate protection?
A. Absolutely! Beyond the tranquility of knowing your interest rate will remain unchanged, RateSafe may also enhance your competitiveness in a bustling buying market.
Having an official underwriting approval and a locked-in interest rate can position you as a more appealing prospective buyer in comparison to others who only possess a pre-qualification or a pre-approval letter.
With RateSafe, you can pursue your dream home with the assurance that your agreed interest rate will hold steady, irrespective of market shifts.***
Are you prepared to embark on your homeownership journey? Get in touch with a Mortgage Advisor today for a free, no-obligation consultation using the form below.
*Always consult a financial advisor or licensed Mortgage Advisor before making any long-term decisions. **The RateSafe lock is valid only until the expiration date. If the lock expires, the rate may change. If the loan does not fund on or before the lock expiration date, the loan must be re-locked at current pricing. ***Your rate could potentially change due to specific changes in circumstances, such as changes in LTV or credit score. Locking your interest rate does not guarantee loan approval.
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