Mortgage request for information.. pre approved amount vs interest rate?
I was recently approved for an FHA loan. The language were 6.75% apr for up $130,000.
Im interested in a property where on earth the builder is offering a rate of 5.5%. Will my pre approved amount ($130,000) go up or stay the same at 5.5%??
Answers:
Since the loan will be through the builder instead of the lender who pre-approved you next the builder will have to qualify you and see how much they will approve you for. It will probably be more than the $130,000. Be sure and look at the other terms of the loan and compare everything, not a short time ago interest rates. For instance, does either loan have points? 1 point is 1% of the loan amount. So if you borrow $130,000 and near is 1 point then you have to wages $1300 at closing plus your other closing costs. Some loans offer a lower APR but charge points in establish to do it. Also, see if there is an origination fee or brokers tax, etc. Ask both places how much they expect the closing costs to be. Will the down payment amounts be the same? Make sure the 5.5% is a fixed rate and there's no balloon fee in the future. Check everything and not a moment ago the APR.
up some not much
Related Questions:
Has anyone ever used Hartland Mortgage Center? How can this company proposition such low rates?
I am looking for a cheaper loan and what would the catch be in using this company? http://www.hartlandmortgage.com/index.as... Say the worst scenario I recompense $5200 in lender fees and $2800 in 3rd jamboree fees, so $7000...
Im interested in a property where on earth the builder is offering a rate of 5.5%. Will my pre approved amount ($130,000) go up or stay the same at 5.5%??
Answers:
Since the loan will be through the builder instead of the lender who pre-approved you next the builder will have to qualify you and see how much they will approve you for. It will probably be more than the $130,000. Be sure and look at the other terms of the loan and compare everything, not a short time ago interest rates. For instance, does either loan have points? 1 point is 1% of the loan amount. So if you borrow $130,000 and near is 1 point then you have to wages $1300 at closing plus your other closing costs. Some loans offer a lower APR but charge points in establish to do it. Also, see if there is an origination fee or brokers tax, etc. Ask both places how much they expect the closing costs to be. Will the down payment amounts be the same? Make sure the 5.5% is a fixed rate and there's no balloon fee in the future. Check everything and not a moment ago the APR.
up some not much
Related Questions:
Has anyone ever used Hartland Mortgage Center? How can this company proposition such low rates?
I am looking for a cheaper loan and what would the catch be in using this company? http://www.hartlandmortgage.com/index.as... Say the worst scenario I recompense $5200 in lender fees and $2800 in 3rd jamboree fees, so $7000...