Re: The mortgage pre-approv
10-09-2011 11:25 AM
Points are what is paid in connection with the interest rate on a loan, in general the more points you pay the lower your interest rate is. 1 point = 1% of your loan amount, so on a $95k loan amount 1 point would be $950. Down payment is also usually expressed as a percentage, i.e. FHA requires a 3.5% down payment, and that percentage is based on the sales price. So on a $100k sales price a 3.5% down payment would be $3,500.
The interest rate, or "note rate", is the rate your principal & interest portion of your mortgage payment is calculated at. The APR is the figure when you take into consideration the closing costs in addition to the note rate, so you can understand the tradeoff between the rate & fees. It's required to be disclosed to you which is why you see it everywhere, but in reality the important items to consider are the interest rate, fees & terms (fixed rate, for how long, etc.) when making an apples to apples comparison of two loan options.
It is important that you feel comfortable with the loan officer you are working with, if they are difficult to get in touch with before you make an offer, do you really think that will change afterwards? Things will just "click" when you find the right one. When you get your credit checked for a mortgage, you have 30 days until another credit inquiry for a mortgage would impact your scores, so if you get it checked every 31 days then yes it should ding his scores a few points each time. You don't need to have your credit checked in order to get a feel if the loan officer is going to work out, you should only have it checked when you know that is the loan officer you want to work with. It's not like credit is an issue with scores in the high 700's... bring in a list of all of your payments (or even a report from here at myFICO.com) and tell them to assume the credit is OK, if they can't make that assumption then you know they are going to be difficult to work with.
"Knowledge is knowing a tomato is a fruit. Wisdom is not putting it in a fruit salad."