We let our clients know the difference. Every bank or lender issues one or the other - a rate hold simply means the interest rate is guaranteed, but the client has not been evaluated by the bank or lender. A pre-approval means that the bank or lender has looked at the application and at the onset, they are pleased with the consumer's qualifications for purchase.
Wouldn't you want to know the difference?
"For a typical consumer, this is one area where a discussion with an experienced mortgage broker {associate} is time well spent" (Rob McLister, Canadian Mortgage Trends.com). This is where we, as mortgage associates at the Bob Hanscom Mortgage Agency, take a look at the application. With our experience submitting close to one thousand mortgage applications to lenders every year, we can give our clients a heads up whether we think there may be a few roadblocks with the application or whether we think things will be smooth sailing.
If mortgage interest rates fall on a rate hold or pre-approval, we also watch closely and go back to the bank or lender to get that rate for our clients. Since the majority of banks and lenders do not automatically adjust the rate, this is one of the many things we do to guarantee great service.
