I initially got pre-approved through better.com but opted for a different lender later on. I’ve made an offer which was accepted, but the new lender offered a rate of 7.4%. My credit score is 730, and my income is $100k per year. I’m putting down 20% on a conventional loan. I have an inspection scheduled this weekend. Is it too late to check back with better.com for potentially better rates, or would additional credit inquiries harm my chances? I’m worried about messing up the process.
You might want to check rates with local credit unions as well.
Review the loan estimate closely to see if you’re receiving any credits for closing costs in exchange for a higher rate.
Rates are climbing; my daughter secured a 7.25% rate despite her 721 credit score. If you’re a veteran, some lenders like academybank.com offer waived loan fees, even for conventional loans.
Frost said:
Rates are climbing; my daughter secured a 7.25% rate despite her 721 credit score. If you’re a veteran, some lenders like academybank.com offer waived loan fees, even for conventional loans.
She might find better rates with NFCU, especially for veterans.
@Bali
It’s not a VA loan, just a conventional one with benefits for veterans.
Frost said:
@Bali
It’s not a VA loan, just a conventional one with benefits for veterans.
NFCU offers various types of loans, not just VA. It’s worth checking out for potentially lower rates without PMI.
Frost said:
Rates are climbing; my daughter secured a 7.25% rate despite her 721 credit score. If you’re a veteran, some lenders like academybank.com offer waived loan fees, even for conventional loans.
That rate seems very high for a VA loan.
@Aris
To clarify, it’s a conventional loan, not a VA loan, despite the veteran fee waivers.
Frost said:
@Aris
To clarify, it’s a conventional loan, not a VA loan, despite the veteran fee waivers.
It’s misleading to mention fee waivers for veterans and not clarify that it’s not a VA loan. VA loans typically offer the best rates and terms.
@Val
Understood, my point was about the fee waivers. My daughter isn’t a veteran; the fee waivers were a courtesy.
It’s perfectly fine to shop around for mortgages. Credit bureaus usually count multiple inquiries for the same purpose within a short period as a single pull.
Definitely shop around! I received quotes ranging from 7.6% to 6.2%. There are plenty of options available.
You’re not locked in until you close. You can still switch lenders; just ensure the new lender can close within your contract timeline. Any non-refundable fees already paid to the current lender are sunk costs.
Check out the Consumer Finance Protection Bureau’s website for a database of competitive mortgage rates to see if your current rate is reasonable.
Shan said:
Check out the Consumer Finance Protection Bureau’s website for a database of competitive mortgage rates to see if your current rate is reasonable.
Sometimes the database might not have current information, so keep that in mind.
With your credit score, you should be getting around 6.375%. I recommend shopping around; 7.4% is too high.
Eli said:
With your credit score, you should be getting around 6.375%. I recommend shopping around; 7.4% is too high.
Rates have indeed gone up recently. It’s still worth comparing other options though.
@Sage
Rates have started to stabilize again recently.
Eli said:
With your credit score, you should be getting around 6.375%. I recommend shopping around; 7.4% is too high.
Where can I find these rates?