FHA rate high???

[jfg1022]

We are in contract for a home and have been dealing with a mortgage lender that we thought so far was good. Our mid scores are in the 640s (644 me and 646 DH). We are W-2 employees with long times at both of our jobs, great income and DTI too.

We are not doing sellers concession and have put 5% down on our home. Today he emailed us the mortgage application and the rate quoted was 4.375%. I know the rates have went up but isn't that still high for FHA? Initially he said 4.1% which I still thought was high based on what I'm seeing/reading. Does anyone else think this is high? Should I shop around?  I am scared of another lender pulling our report and then pulling down our scores under the 640s mid. 

[StartingOver10]

Shop your lender. Remember to get both the rate and the costs. You are paying all of your own closing costs or is the lender contributing $$ twoard your closing costs?

[jfg1022]

We are paying all closing costs out of pocket and put 5% down. 

We're going to call him tomorrow since we already have given him all of our info (paystubs, bank statements, W2s, etc) but I am going to call another lender too to find out. Do you know if we can just give the other lender the report that the current lender pulled about a month ago? I'm concerned about a hard pull on our scores. Thanks.

[StartingOver10]

You can start off by giving the other report, but if you do go with the other lender for a full application, s/he will need to pull your report. It is more important to get the right loan then to minimize inqs right now. But you certainly can get quoted a rate and costs based on the info you have now.

[holycowe]

You should shop around. Lately, every lender Ive talked to willing to cover at least some of your closing cost. And I think it's a little bit high for fha rate (but maybe because your scores are not that good, that's why).
Pulling credit for the same purpose within certain period (2 weeks?) won't hurt your record. That's what I heard