Applying for loan

[Anonymous]

Hey all,

I just asked a girl with Well Fargo to pull my credit report and start the apporval process for a home loan. My creidt isnt great but not horrible either (697). I was wondering how much I might save by shopping for rates. I understand that once I have it pulled once for a mortgage I can do so as many times as I want in a month with no additional effect on my score...Is this true?

[Anonymous]

OK...I just heard back....Mortgage agent says that I qualify for at least 375K...My scores are as follows

EFX     697
XPN     700
TU      678

The rates they offer are

FHA                                                             5.25%
Conventional                                                 5.375%

Looks to me like FHA is the way to go here....any advice? and given the rates quoted should I shop around?

[Lel]

Do you have enough down payment for a conventional loan?  FHA requires a small down payment, but there is usually a mortgage insurance premium that adds to the cost of the loan.  The MIP could offset any savings from the slightly lower interest rate.

[ShanetheMortgageMan]

Rates look competitive, no points/origination fees I hope?  Did you get a list of the lender fees that go along with it?

If you have 10% down or more, with the mortgage insurance rates, conventional starts to gain advantage... less than 10% down, the payment is usually lower with FHA.