Posted on: 10th Oct, 2009 11:30 pm
im a first time home buyer and im currently on the hunt for a home. i was pre-approved for a loan and im not sure about the note/qual rate. what does that mean? is that the interest rate? now a days what is a good interest rate?
Your qualifying rate is the rate that is used to determine whether you qualify for the loan or not. Many loan officers will use a rate that is slightly higher than market to paint a "worst scenario" in the event that rates climb before you lock in.
sarah it doesn't make sense to think about a good, "lowest" rate at this time. once you are deep into the process, rates will become more of a focus. they won't be climbing any time soon to the point that you'll need to worry about it.
thank you. :)
you are quite welcome.