Practice what you learned

Imagine that your friend has been approved for a loan and is discussing what to do next. Decide what you think of his comments and select your response from the options provided.

“My loan was approved! I’m so relieved. It’s all up to my loan rep and agent to take care of the details now.”

Correct! You should be careful. Approvals usually come with a list of conditions. Have you seen it? Your work isn’t done yet, they’re your responsibility. Tell your loan representative to show you the approval sheet, and to work with you to assure that you are complying with all requirements.
Incorrect. You should be careful. Approvals usually come with a list of conditions. Have you seen it? Your work isn’t done yet, they’re your responsibility. Tell your loan representative to show you the approval sheet, and to work with you to assure that you are complying with all requirements.

“I’m going to lock in my rate in a couple of weeks since a shorter lock period will be cheaper. Interest rates might be cheaper then too.”

Correct! Interest rates can change a lot in 15 days. That’s why it generally makes sense to lock in right away and avoid the risk of having increased interest rates blow your deal.
Incorrect. Interest rates can change a lot in 15 days. That’s why it generally makes sense to lock in right away and avoid the risk of having increased interest rates blow your deal.

What, Why, How Check your understanding

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