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Our lender just locked in our rate, and it is high--.25% over their previous estimates, and almost .75% over the average rates for the loan type. We have an accepted offer and have done inspections, but not the appraisal. We have submitted all the necessary credit and income documents, but we have not viewed disclosures or signed any other documents with the lender. We were not consulted about the decision to lock in the rate. Their explanation is that the rates were about to go up.
This all gives me a bad vibe. We are looking at a 5.25% rate on a conventional 30-year fixed loan with credit scores over 780, and even our local credit union lists a 4.75% rate for that loan on their website. Am I missing something? What are our options?
I'd shop around - even if you wind up having to resubmit docs and you lose some money that maybe you can't get back from the initial loan you were working on... that extra half-point is going to cost you $41.66 per month for every 100k you are borrowing. It is worth your effort to try and get something better.
It’s a 200k property, so I agree that the $100/mo difference is worth it.
It’s not occupied, and will be our residence and only property. No investors involved at all.
The lending agent did offer that we could “buy down” to a lower rate—is that a common practice, or fair/worth it in our situation?
Our lending agent happens to be a family friend, so we never shopped before we started looking. Does it negatively impact them if we drop out of the loan?
It’s a 200k property, so I agree that the $100/mo difference is worth it.
It’s not occupied, and will be our residence and only property. No investors involved at all.
The lending agent did offer that we could “buy down” to a lower rate—is that a common practice, or fair/worth it in our situation?
Our lending agent happens to be a family friend, so we never shopped before we started looking. Does it negatively impact them if we drop out of the loan?
Shop around. If they can't get you the lowest rate go somewhere else, if they can't tell you where to go to get the lowest rate they are not your friend, they are users.
Our lender just locked in our rate, and it is high--.25% over their previous estimates, and almost .75% over the average rates for the loan type. We have an accepted offer and have done inspections, but not the appraisal. We have submitted all the necessary credit and income documents, but we have not viewed disclosures or signed any other documents with the lender. We were not consulted about the decision to lock in the rate. Their explanation is that the rates were about to go up.
This all gives me a bad vibe. We are looking at a 5.25% rate on a conventional 30-year fixed loan with credit scores over 780, and even our local credit union lists a 4.75% rate for that loan on their website. Am I missing something? What are our options?
This is the most alarming element to your post and even if they had locked in better terms, is still a problem.
This is the most alarming element to your post and even if they had locked in better terms, is still a problem.
The lending agent's explanation was that they were getting alerts to lock in. I spoke to someone at my credit union and they said they couldn't help because our closing date is too soon, but when I mentioned the rate lock and the fact that the lender ordered an appraisal without any deposit or e-signing from us they advised us to get out.
So now we have two weeks to find a lender and close. I have a couple leads, anyone here have any tips for us?
I thought they have to have you sign to lock in a rate?
We signed the papers for our rate to be locked in on May 1st. 4.625% 30 year fixed, midscores 808, 3% down, conventional, Fannie MAE.
I hope that's a good rate.
We are locked in until June 15th. We are supposed to close June 8th, but still waiting to hear from owner if they will do our request for repairs.
That's a good rate today.
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