I just got a new "rate sheet supplement" for adjustments and fees. I wish you could see these things. You'd really be surprised that a Loan Officer can accurately quote rates at all. Take a look at this, it's for FHA/VA Loans;
Loan Size
$90,000-$417,000 no adjustment
$60,000-$89,999 subtract .125 from price
$40,000-$59,999 subtract .250 from price
less than $40,000 not accepted
The obvious conclusion; smaller loans cost more money to the consumer.
Credit Scores
Fico 720+ no adjustment
Fico 660-719 subtract .125 from the price
Fico 620-659 subtract .375 from the price
Fico <620 and no score not accepted
The obvious conclusion; lower scores cost more money to the consumer.
Look out for the olde DOUBLE WAMMY!
Small Loans with Low Scores are MUCH more costly to the consumer!
So, John Q. Homebuyer calls and nicely asks, "can you tell me what your rates are today on an FHA purchase." I ask if he has any idea what the mortgage amount will be and does he happen to know what his score is. He answers no.
I can can give him the basic rate today with a verbal disclosure that it is subject to change, depending on the market conditions, his score, and the size of your loan.
When I respond I'm not being nasty, I'm being truthful.
No, I can't quote you a Rate!
;)
;)
I never quote rates. I tell people I'm not a mortgage professional and you do NOT want me to help you in this area, lol. I do give them our in-house Mortgage Specialist contact info.
Back in the 80's I used to work for a major bank (National Westminster Bank - no longer around) and used to run credit reports and learned how to read them. Now we have credit scores. Is that better or worse for the consumer as opposed to the former scoring? Inquiring minds want to know :)