If It Sounds Too Good To Be True…
It’s not uncommon to see advertised mortgage rates well OUT of line with reality.
A rate sheet or advertisement might look something like this:
Whether the advertised options will be available for your transaction depends on too many variables to make the rates accurate. Chances are that some—if not all—of the following criteria will be considered before a “real” rate quote is offered:
Loan Parameters
Loan Size/Amount
Loan Types:
Fixed/Adjustable
Amortized/Interest Only
Conforming/Jumbo
FHA/VA/USDA
LTV/CLTV/HCLTV
Cash Out or Rate & Term
Closing Date/Lock Duration
Documentation Type:
Full Doc or Alternative
Stated or No-Income
Income Parameters
Housing Ratios / Debt Ratios
Time in Position
Time in Career
Type of Earnings:
Salaried or Self-Employed
Seasonal vs. Steady
Salary/Overtime
Bonus/Commission
Social Security
Alimony/Child Support
Rental Income
Interest/Dividends/Gains
Property Parameters
Type of Property:
Single-Family
Multi-Family
Detached
Condo/Co-op
PUD
Market Status:
Stable
Appreciating or Declining
Condition:
Repairs Needed
Wells, Septic, etc.
Occupancy:
Primary
Second Home
Investment
Bond & MBS Markets
Rates are ever changing.
Credit Parameters
Credit Scores / Inquiries
Late Payments
Collection Accounts
Judgments
Tax or other Liens
Bankruptcy / Foreclosure
Short Sale / Deed in Lieu
Asset Parameters
Liquid
Semi or Non-Liquid
Own Funds
Gift or Grant
Borrowed Funds
Seasoned or Un-Seasoned
Cash or On Deposit
As you can see, many factors impact your interest rate. When things are not black and white, a quote can prove unreliable until a credit check, a property appraisal, title search and even thorough underwriting of your application have occurred.
The good news is that this is what we do every day, and I will be happy to assist you through the process. Together, we will prevent unpleasant surprises and discover what is really available for your unique situation.
