Shopping rates for an FHA loan

Shopping rates for an FHA loan
Profile photo of asked 11 months ago

Hi again!

I am currently in the process of shopping rates and I am confused and getting depressed. Before shopping, I was told by Lender 1 that a 640 score would yield a 3.25% rate and a 620 would yield a 3.75% rate and those numbers stuck in my head and then reality set in.

I pulled the trigger with Lender 2, after pulling my own scores, due to Lender 1 being at Disney World for a week.

Scores are EQ 627, EX 634 & TU 641

Lender 2 came back with a 4.125% rate after pulling my report. He provided this info in an email and I still don’t know what his fees are.
Lender 1 said he could do 3.75% rate after I told him my score. He provided this info in a GFE document indicating the rate based on my score and all fees.
Lender 3 said that when he ran the numbers based on my 634, his system indicated a rate of 4.125%, but he thinks it may be a glitch and he would check the validity of this.

With 2 lenders saying a 4.125% rate and only one saying a 3.75% rate, I’m feeling like a 3.75% rate is not happening.

Then Lender 1 said, I could always buy down the rate. When I said ok, I would probably do that, he responded by saying that buying down the rate is not a good idea. Huh? You just said I could.

4.125% for an FHA Ioan just seems high to me. Can different lenders provide me with a different rate or does my score just automatically give me the same rate everywhere?

Either way, somebody is lying and I’m at the butt end of the joke. Any thoughts?

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