cancel
Showing results for 
Search instead for 
Did you mean: 

How To Rate Shop??

tag
baglady215
Established Member

How To Rate Shop??

Hi,

I am looking to buy a home in August/Sept. First time home buyer. I met with a mortgage broker today just to get a feel for where I am as far as credit, DTI, etc. He told me I will probably go FHA, which I knew anyway. When we got to talking about rates and payments, he told me 6.875% was a good estimate on the high side. No points. That seemed kind of high, but what do I know. I thought FHA was like 6%. Is that high?

Also, when time comes for pre-approval, how do I rate shop? Do I have to get preapproved everywhere (as far as W-2's, paystubs, etc)? Or do they just pull your credit and give you a GFE?

Thanks.
Message 1 of 4
3 REPLIES 3
JuliaTN
New Contributor

Re: How To Rate Shop??

6.875% is on the high side but keep in mind that August is a million miles away when you consider the way rates have been jumping up and down. He's trying to be realistic about what rates may be then - and there's certainly no guarantee they won't be higher at that point.
 
No, you don't have to provide mountains of paperwork to every lender. When you get ready to apply, you can talk to several brokers/banks and give them an idea of your financial condition. They can tell you what they think you will qualify for based on the info you provide. When you find one you like, you will then give them whatever paperwork is needed for an actual approval.
Message 2 of 4
SanDiegoEngineer
Regular Contributor

Re: How To Rate Shop??

Something else to bear in mind was whether the quote was for the interest rate of the loan itself, or the full APR (with fees and such calculated in) - the APR on a FHA tends to be significantly higher than the interest rate of the loan itself as I believe they take into account the extra fees charged for FHA loans (like the 1.5% up-front MIP) which are normally rolled into a FHA loans balance.
Message 3 of 4
baglady215
Established Member

Re: How To Rate Shop??

Thanks to both for the advice.

The 6.875 was the rate, not the APR. Hopefully by the time my time comes, rates will be at a historic low. Smiley Happy
Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.