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Just curious. How to best qualify for the lowest rates available?
We have 20% to put down with seven figures in reserve
DTI is normal (roughly 12% including keeping our current mortgage, single digits if we sell first)
Credit score 800+
Homeowner for over a decade
Have had current jobs for 4-5 years
Looking at 15 year normal (not jumbo)
If you truly have “seven figures in reserves” and you are buying a home that doesn’t require a jumbo loan (i.e., it’s not that expensive) why don’t you just pay cash?
If you truly have “seven figures in reserves” and you are buying a home that doesn’t require a jumbo loan (i.e., it’s not that expensive) why don’t you just pay cash?
Why pay cash when you only are paying 3.5% on a 15 year loan? Even if you stick it in a CD paying 2.5% you're only costing yourself $1,000 per $100,000 loaned a year. To keep that much liquid for 1% penalty is nuts. A stock market drop like Dec I made 20% off of for example, it would cost me a ton in lost income to pay cash.
don't let mathjack comes in to give everyone the common sense theory . Pipsters not asking for paying cash OR not. The question is to best quality for lowest rate possible, so the other reserve can either offset or earn more money for him in the long run.
Really to shop around for multiple lenders, pipsters. I had done this, like buying cars, going to get quotes from different dealers . Running credits for mortgage won't affect credit scores much as those are normal inquiry (even realistically they are hard inquiries) you probably know this already. good luck.
You are there. Ask the lenders you talk to if they price match or beat your best rate.. Technically, that is the only way the lender can offer you a lower rate than the guy next door, with identical credit scores. Get the lowest quote you can, than ask other lenders if they will compete.
There's a good bit on this site with tips on how to rate shop - do some digging. It's still pertinent, regardless of current market.
Just curious. How to best qualify for the lowest rates available?
We have 20% to put down with seven figures in reserve
DTI is normal (roughly 12% including keeping our current mortgage, single digits if we sell first)
Credit score 800+
Homeowner for over a decade
Have had current jobs for 4-5 years
Looking at 15 year normal (not jumbo)
We are in a fairly similar situation, and I'd suggest if that's what you're wanting to do is get the cheapest rates, don't go with a 30 year or even a 15 year. You have so much available cash (we also have well into the 7 figures in cash), go with a 10/1 ARM. Everyone gets all scared of that idea, and I don't know why. It's literally set for 10 years at the same rate, and I have ZERO intention of ever letting it get past 4 years old since I have plenty of money on the side to wipe it out in 5 minutes if I feel like it. They gave us 2.95% interest on that loan, which is low enough I can get more than that through Wells Fargo on non-bid T-bills their financial planning guy offered me. So that was my logic, at least, but I don't know if the logic actually makes much of any sense. I wasn't supposed to have any significant cash on the side, but a deal is closing this month where the equity I had isn't transferring as expected to another investment, but instead cashing out, and I was already in process on the mortgage so that's where I'm sitting now. I admit I'm confused if that even makes sense, or if I'd be better off just paying in cash, but my feeling was to keep the low interest mortgage for a few years and see what happens. If the market takes a big dive, I can put money into stocks at discount prices and ride that low interest loan longer than I expected.
We are pretty much at the lowest. I can't imagine them getting much lower. I don't think the regular 30 year rate has gone below 3.5%. Once the recovery is secure is the government doesn't mess things up rates will only go up. Here is the nice thing about rates. You can always refinance. Chances are that they are not going to go much lower so that it will be worth the effort and cost to refinance.
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. Pipsters not asking for paying cash OR not. The question is to best quality for lowest rate possible, so the other reserve can either offset or earn more money for him in the long run. 
