Alex…
Please understand that sites like bankrate are very misleading.
Without qualifying you for your EXACT situation, the rates and “average” rates that you are looking at don’t tell the whole story, and honestly mean nothing.
The industry has been built on misleading the borrower into believing that they qualify for a certain rate, then in many/most cases finding out that it it’s going to be higher OR that they don’t qualify at all. It disgusts me.
Most who “shop” by asking “what’s your rate” are just asking to be fooled. When asked, most in the industry just lie and offer a lower rate than what is truly available, to mislead and make the borrow think that they found the lowest rate. Even if they were to lock the rate that day, it doesn’t mean that they will qualify and get approved.
I could lock a rate even though I know you don’t qualify for it. (Not something that I do) to get you started in the process.
I know it’s what most people do, and it’s why many people have a horrible experience or go through torture to get a loan. Lots of liars in the biz.
I’d need answers to important questions before I could price the loan for you. It’s what YOU don’t know about sites like bankrate that are dangerous.
With the limited information above, you may not even qualify for 95% financing.
Everything to a lender is risk/reward. One thing that I can tell you for sure, is that you will be MUCH better off with 10% down and a PAR(wholesale) rate for a 80/10 rather than 5% down and buying the rate down. (15%-20% down even better)
Find someone that you can trust, agree on a fixed fee to them, and let them find you the best loan that you actually qualify for. That’s probably the best way to “shop” for a loan.
Anything other than that is what leads to the lies, deceptions, trickery, overcharging, etc that goes on, EVEN when you deal with family & friends. People asked to be fooled and get what they wish for.
Dealing with builders is a whole other game. They try to make a profit from every angle of the transaction, including upgrades and financing. There is no solid generalization, but they also mislead with their rates.
In general, incentives from builders are convenient, but expensive.
Assuming that going directly to a bank gets you the best loan is probably the biggest myth out there. It might be possible,(esp when compared to a slimeball) but if you’re dealing with someone honest, you may have many more options to get a better loan.
Banks DO NOT have to disclose when you are overcharged, brokers DO have to disclose it. It’s the power of the banking industry.
My general advice is don’t strap yourself and be a slave to a mortgage, esp in this market.
Knowing what you need to qualify for a great loan means that you can prepare & plan for it, instead of walking in and getting blindsided.
I’d be happy to speak with you privately about your situation.
Please look for my email. Thanks.
