One of the first questions you’d probably like to ask your potential mortgage lender is: What is the interest rate? While this may sound like a very reasonable question and a logical way to compare lenders, there is no easy answer.
There are several factors that will determine YOUR interest rate and fees. Your credit score has the most impact, but your loan term, debt to income ratio and the current market conditions all affect the interest rate you will qualify for. Credit history, down payment, job stability and other factors all represent layers of risk, and that risk is the only variable allowed when determining YOUR interest rate.
In past years, the loan officer could adjust your interest rate at their discretion and one person, or a group of people might be offered a lower interest rate and fees compared to someone else. The primary reason was that commissions to the loan officer could vary depending on what rate was charged. Those days are gone and now the Dodd-Frank Reform and Consumer Protection Act regulates banks and mortgage lenders. Loan officers are no longer compensated based on what interest rate is charged.
Today everyone must be treated equally and there is no discount on fees, or reduced interest rate allowed unless that lender offers the same rate and terms to everyone. If a lender offers any individual or group of individuals a discount on fees, lower interest rates or free appraisal, exclusively for that individual or group, they must offer the same discount to everyone else with the same qualifying credit, asset and income standards or they are in violation of current Federal and State regulations.
Academy Mortgage is competitive when compared to other mortgage lenders, but there are other, more important reasons to choose a lender. Providing excellent service, good communication, having a proven track record and the ability to close your loan on time should be a major consideration in that choice. Buying a home can be a stressful time so you should choose a professional that can help to eliminate that stress. Let Doug Bullwinkel make your VA Home Mortgage a pleasant experience.
For an accurate interest rate quote, please contact Doug Bullwinkel at email@example.com for a review of your specific financial situation.