Question : Does the home loan interest rate vary between online quotes and the real ones ?
- I am planning to buy a home- i have put an offer on a house and almost 100% done dealNow I have to look out for a home loan. I am looking at several online interest rate quotes what lenders are giving based on my facts.Some of them are sending quotes for 4.78% 4.5% , now does these rates change when we actually sign there application or do they have to stick with the rates what they have quoted me online ?
- asked by JohnPau2010
All Answers:
Answer #1
The rates will vary right up until the time youlock in. The rates online are not consideredlegally binding offers, just an indication as towhat the rates were at the point in time the pagewas updated.
- answered by Steve D
Answer #2
It will depend on your credit rating, those quotesare for people with good credit (over 750).
- answered by Landlord
Answer #3
John Paul,First, I hope you contacted a good,reputable loan office BEFORE putting an offer on ahome. And I hope you are getting goodprofessional guidance through the process. Thehome buying process can be a thorny one if nothandled properly...and the same is true of thehome loan process. There is no question thatthere are some great deals out there...and somegreat rates. But you have to think of the onlinedeals as "big tent" offerings ... while they maywell apply to your particular circumstance ...they also very well may not. Every lender, onlineor off, has their pool of offerings ... somebroader than others. Each has certain criteriathat must be followed in securing that loan. Andnot every loan is available for every borrower. Are you self employed? Do you have a regularsalary? Do you get hourly pay? How long have youbeen working for your current employer? Whatother fixed debts do you have? Do you pay childsupport or allimony? Do you have any positive ornegative offsetting factors? What are your creditscores? These things, and many other factors,impact what type of loans you may qualify for ...and what types may not be available to you atall.I've never been a fan of "shopping rates" forthe simple reason that they don't tell the wholestory. I remember a buyer of one of my listings"got a great deal" from a particular lender (whichhe happened to find online). Problem was when hegot to closing NOTHING in the loan package boreany resemblance to the loan he THOUGHT he wasgetting! He thought it was a fixed rate loan ...it was not. The rate he'd been quoted was not therate he actually got. He'd never heard of"negative amortization", and his loan had it. Henever gave any thought to a "prepayment penalty"... his loan had that, too! With a lot of work wewere able to get the prepayment penalty waived(this is a BIGGIE because the penalty was over$7,000 in the event he sold his home or refinancedwithin the FIRST 3 YEARS of the loan!) Eventhough the terms were horrible, he DID close onhis purchase ... and went right out andimmediately refinanced his new home!My point isthat WHAT YOU DON'T KNOW can cost you big time. This is not something to "wing it" with. Talk tofriends & coworkers & family who've dealt withreliable lenders in the past and ask forrecommendations. Most certainly if you areworking with a real estate agent, ask them forrecommendations as well. We deal with lenders allthe time and if the agent is experienced, theyhave an assortment of lenders they know areprofessional, reliable, ethical people ... andthey also know who to avoid!!!! Talk to a fewrecommended lenders ... have them prequalify /preapprove you, making recommendations on programsthey think your financial profile best fits. Aslong as the rates they offer are "in line" withwith the market in general, I wouldn't worry aboutgetting the best "deal". When you're looking atjust raw numbers, you don't know what is being"cut" to get to that number. Quite often it'sreliability and/or service.By the way, mypreference is to ALWAYS deal with a lender whowill shephard you through the process fromapplication to closing on your purchase. As theprocess moves along, you want to have a real liveperson you can call to answer questions, follow upto be sure all the proper steps are being taken,and to hold accountable if/when they're not.Goodluck! I know this is an exciting time and I hopeall goes well for you!
- answered by JudiB
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