The Number That Catches Buyers' Attention and What It Actually Represents

That mortgage rate you saw online this morning. The one that looked really good. It might not be your rate and Moses Alford wants to save you the frustration of discovering that later in the process rather than upfront.

What Advertised Rates Are Actually Based On

The rates that appear in advertisements, on comparison websites, and in promotional content are almost always based on a very specific set of assumptions. A particular credit score range. A specific down payment percentage. A specific loan type. A specific property type. And sometimes the advertised rate assumes that the borrower is paying discount points upfront to buy the rate down to that number.

Change any one of those variables and the rate changes. Your situation is almost certainly different from the scenario the advertised rate was built around which is why the number in the ad is rarely the number that ends up on your loan estimate.

What Actually Determines Your Rate

Your rate is based on your situation. Your credit score. Your down payment. The loan type that fits your purchase. The property type you are buying. The loan-to-value ratio. Whether there are other factors in your financial profile that affect risk pricing.

Some of those factors are fixed at the moment you are ready to buy. Others are adjustable with some planning and preparation time.

Where the Opportunity Actually Lives

As Moses Alford explains some of the things that affect your rate are things you can actually work on before applying. A credit score improvement of even twenty points can move you into a better pricing tier. A different down payment structure might change the loan-to-value ratio in a way that affects the rate. A different loan program entirely might be better suited to what you are trying to accomplish and carry more favorable pricing.

None of that becomes visible if you are shopping for a rate before understanding what you are actually shopping for.

What the Right Approach Looks Like

Stop looking at advertised rates and trying to match them against your situation. Look at the full picture first. Let a lender review your actual credit, your actual down payment, your actual loan type, and identify the actual options available for your specific scenario.

That review produces your real rate options and the strategies that could improve them. The goal is not to find the best rate advertised online. The goal is to find the best financing strategy for you specifically.

Moses Alford will look at the whole picture, run the numbers, and show you your real options. Reach out to start that conversation.

Sources

ConsumerFinancialProtectionBureau.gov
MortgageNewsDaily.com
FannieMae.com
Investopedia.com
BankRate.com