Hi all, I'm getting to the final stages of closing on a somewhat quirky transaction but one still 100% on the up-and-up:
In the same state (CO) I'm selling the ranch I currently own to my mom and her husband, and buying their house from them. We're trading homes and getting new loans in the process of doing so. They are using a VA loan to purchase my ranch from me, and I'm looking at using either a high-balance conventional OR a jumbo to purchase their home from them.
As of today my 3 mortgage scores are TransUnion Fico 4: 705, Equifax Beacon 5: 703, and Experian Fico 2: 690. I have been diligently working on bringing up my scores throughout the lending process (when I started with my current lender my mid-score was 683) in order to bring my rates down. The last piece of the puzzle is that with a home purchase price of $752k currently (that's what the house appraised at w/ the current lender last month), and a loan amount of $550k, that puts me at like 26.83% equity (and not over a 30% equity / <70% LTV position.) We had started with an $850k sales price but the appraisal came in lower than I hoped; this house has never sold since bought by my mom and dad in the 80s, and is in a pretty unique neighborhood, so we weren't sure where it would land. Anyway -
As of last week Tuesday I had paid off two more CCs that would take nearly 3 weeks to update on their own to show a $0 balance, so I asked the lender for a rapid rescore on those two specific accounts to ensure they updated across all 3 bureaus. Today the lender did a hard credit pull again (without asking first, interestingly) and is claiming the best product and rate he can provide me is a high-balance conventional at 4.5% with a lender credit of $467.50.
What has really caught my interest is he's claiming that underwriting for jumbos versus a high-balance conventional "won't accept" any rapid rescores during the process - which smells like BS to me.
On my own I can see the best rates via BankRate etc. for a 700-719 score in this zip (80016) is a jumbo at 4.25% and a $907 closing costs.
Considering just the P+I payment for 4.25% on $550k is $2706, but at 4.5% is $2787, that's nearly $1,000 a year difference between the rates and I don't find myself particularly compelled to pay the higher rate simply for the sake of convenience.
Especially considering this sale doesn't fall apart if we don't close by a certain date (as it's my mom/stepdad) - I would very much appreciate this community's input on what you think I should do! Thank you!
I think I would find another lender