One mortgage officer locked me in at a 6.99 rate but basically said I had to pay an upfront costs at $14k to keep that rate and my total closing costs (not including downpayment) was $28k while another locked me in at 6.125 and quoted me with a $6.3k closing costs. I’m so confused.

The first one told me that I had the best rate on the market but if I wanted to lessen the upfront closing costs then I can go with a 7.75 rate and pay $20k in closing instead (not incl downpayment).

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This is when you say screw the first guy and move on with the other.

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1. Rates dropped substantially yesterday.
2. Do NOT pay 28k in closing costs.

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That first guy is lying to you. Move on.

likesmart

Shop around

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I’m a first time home buyer btw and it’s been hard navigating real estate. I feel confused and lied to by my first mortgage officer and I’m not sure where the numbers he’s getting is coming from.

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The difference in closing cost between the 6.99 and 7.75 is what is called buying down the interest rate. You can get a better interest rate by paying more money up front, but it is expensive to do so as every point you buy you pay roughly 1% of the value of the loan.

I don’t know the cause of the large difference between the two mortgage officers, unless the two quotes came at different times (one in June and the other in October).

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Mortgage interest and mortgage points are tax deductible. If you like the overall home and price, find the mortgage payment you are comfortable with. The longer you plan to stay in the home, the less the rate matters. You can always refinance with the same or alternate lenders when interest rates change. Some lenders will also let you move down you rate for a nominal fee and not through refinancing (eg BOFA). Buying your first home is huge. Read and compare your loan estimates and talk to multiple lenders but most of all be patient while you learn and above all congratulate yourself for being in a position to buy! Good luck!

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Get a quote from better mortgage online. Their tool makes it much easier to visualize and adjust various options (rate vs points etc). You can then alway use the loan estimate from better to negotiate the others or vice versa. Always negotiate and treat the “officer” like the loan salesperson they actually are.

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Def getting ripped off. As a first time home buyer there is more perks, loan program, less requirements. Specially with good credit and good source of income, dti.. What is your DTI? Under 45%? Fico score? also Google your scenario and look up first time home buyer perks. FHA is 3.5% Dwn pymnt. You can do 3%, 5%, upto 20% to avoid PMI( mortgage ins). What are the comps around the neighborhood, schools, area, crime, etc... What city & State? Shop around for the entire month of November so your Fico scores don't drop as much. Always check with your lender what is the lowest loan amnt to remove your PMI. After closing. I believe is 80 or 90% of the loan amount. Some ppl still continue to pay it, the lender will not remove it if you don't tell them. Smh... Just a few points... Hope This helps.

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I actually heard Rocket was the most expensive.. Now it makes sense. With your stats you should get great deal. Specially if you have no debt and first time hm buyer, w. Descent income. Just hope your not in Cali. Ha! But def shop around. Do little research. Even w your own bank, so you can get some more tips. Google reviews for lenders in your area or state. Get better idea of the taxes you'll be paying as well. Call your insurance to get quotes, you should get bundle w your car insurance etc. Sorry but Amer Fam I believe is pricey. Make sure your get an inspection on your home before closing and request for seller to get things fixed or taken care of, if not ask for deals w seller. Its a lot of homework but well worth it.

Shop around! Call all the banks and brokers in your area, let them know you got a better rate & ask them to match it and for credit.

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Yeah Defs shop around. I bought a house a few months ago and didn’t have to pay to keep my rate locked in even though rates went up between pre-approval and closing.

Lenders are throwing in more and more incentives for you to go with them. Rate locks and 1-0 buydowns are on the table.

Also be sure to shop lenders against each other. Good rule of thumbs is to check with a broker, then a credit union. Get a summary of the loan and estimated cost to close with each of then then take the lowest one to the other lender. Go from there

The first guy is trying to rip you off. Leave him and keep shopping around.

Remember …. Lenders are salespeople at the end of the day. Go with the best deal for you.

Where are you located? I can take a look at the loan estimates and let you know if you want. Happy to help.

I am in Houston, TX

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