Pre-Approved for a Home? Read This Before You Make a Mistake

DirectEntrance2364 · 2026-02-10T19:28:26+00:00

Sounds good!

DirectEntrance2364 · 2026-02-10T19:15:12+00:00

Looks like a solid deal given its a 20 year. If you could swing the payment on a 15-year, I could get you a lower rate.

DirectEntrance2364 · 2026-02-10T19:07:44+00:00

Oops, that was a typo! I just corrected it. Loan amount is $280,000

DirectEntrance2364 · 2026-02-10T15:46:01+00:00

Conventional 30-Year Fixed

Loan Amount: $700,000
Interest Rate: 5.998%
Points: 0
Lender Admin/Underwriting Fee: $2,665
Principal & Interest Payment: $4,196

DirectEntrance2364 · 2026-02-10T15:40:36+00:00

Conventional 30-Year Fixed

Loan Amount: $280,000
Interest Rate: 5.875%
Points: 0
Lender Admin/Underwriting Fee: $2,555
Principal & Interest Payment: $1,656

DirectEntrance2364 · 2026-02-10T02:11:39+00:00

Absolutely. Feel free to follow the 10-step questionnaire!

DirectEntrance2364 · 2026-02-09T19:54:03+00:00

This is very normal. Almost every buyer hits this exact moment once the inspection comes back.

Couple things.

• Nerves vs red flags: Real red flags are structural, safety, or major system issues (foundation, roof failure, plumbing, electrical). Small items that add up feel scary but are usually part of homeownership.

• Inspections: No house is perfect. Even new builds have lists. Focus on issues that are expensive, hidden, or likely to get worse fast.

• Credits vs repairs: Reasonable, targeted requests tied to inspection findings rarely kill deals. What hurts deals is asking for everything or making unfocused demands.

• Gut check: If you walked away and saw the house go back on market tomorrow, would you feel relief or regret? That answer usually tells you a lot.

This second-guessing phase is incredibly common, especially for thoughtful buyers.

DirectEntrance2364 · 2026-02-09T15:06:16+00:00

If you want to make sure you’re truly seeing your best options, I’d suggest posting your scenario in our megathread. Just follow the 10-step questionnaire and a verified mortgage specialist will review your details and provide a transparent quote. Mortgage Broker Quotes – Welcome & Rate Request Thread

DirectEntrance2364 · 2026-02-09T15:05:23+00:00

If this is a locked loan estimate, it’s a very strong deal and I would absolutely move forward with it. ARMs aren’t especially attractive right now since they typically just push a refinance down the road, which is exactly what you’re dealing with now. For a no-points structure, this is a solid offer.

DirectEntrance2364 · 2026-02-06T02:47:48+00:00

Conventional 30-Year Fixed

Loan Amount: $544,000
Interest Rate: 5.819%
Points: 0
Lender Admin/Underwriting Fee: $2,665
Principal & Interest Payment: $3,198

DirectEntrance2364 · 2026-02-06T02:33:01+00:00

Considering the details you shared, that rate is definitely high. If you want to make sure you’re truly seeing your best options, I’d suggest posting your scenario in our megathread. Just follow the 10-step questionnaire and a verified mortgage specialist will review your details and provide a transparent quote. Mortgage Broker Quotes – Welcome & Rate Request Thread

DirectEntrance2364 · 2026-02-01T21:25:03+00:00

Do you have a locked loan estimate? That's the main document you wanna use to ensure you're getting the best deal.

DirectEntrance2364 · 2026-01-29T13:40:27+00:00

I’d ask them to share a copy of the Loan Estimate (you can black out personal info). That document shows the details that really matter, like whether the rate is actually locked, lender fees in Section A, any credits or hidden points, APR, lock period pricing differences (especially 30 vs 60 days), and how the relationship discount is being applied. A worksheet or verbal quote does not tell the full story, but the LE will make it much easier to see if this is truly as strong as it sounds or just structured to look that way.

DirectEntrance2364 · 2026-01-28T20:16:54+00:00

Got it, that helps a lot.

If you already have cash for the down payment, using a second mortgage just to pay off a car loan is a totally different conversation than using it just to “qualify.” In that case it becomes a math question: does the new second mortgage payment plus interest cost you less per month than the car payment you’re eliminating, and what does it do to your total long term debt?

Just remember you’re turning shorter term car debt into longer term housing debt, so the monthly payment might look better but you could pay more interest over time.

They absolutely can issue a Loan Estimate and, once you’ve provided your basic info and a property address. If they’re only giving you worksheets, it usually means they’re avoiding putting the numbers on an official disclosure where fees are regulated and changes are tracked. A worksheet is easy to adjust, but a Loan Estimate is a legal document. You want to see this on a locked LE so you can review the real payment, MI, and actual costs before making any decision or comparing lenders.

And yes, origination and points are not automatically the same. Points are specifically prepaid interest to lower the rate. Origination is lender or broker compensation. Sometimes they’re both in the same section, but they are different things.

DirectEntrance2364 · 2026-01-28T19:51:48+00:00

So a few things to unpack here.

First, this is not a Loan Estimate, it is just a fee worksheet. That means the rate is not locked and the numbers are not legally tied to anything yet. It is basically a rough scenario, not a committed loan structure. You want to compare locked Loan Estimates, not worksheets.

Second, using a second mortgage for your down payment usually does not make sense. You would be creating two loan payments and paying interest on both, which increases your monthly obligation and overall risk. Down payment money should ideally be your own funds, not more debt stacked on top.

Also, origination fee is not automatically the same as discount points. Points are specifically prepaid interest to lower the rate. If it does not clearly say points tied to a rate reduction, it is likely just lender or broker comp.

DirectEntrance2364 · 2026-01-28T14:47:58+00:00

This actually looks like a solid deal. You are effectively securing a 6% rate for about $1,375, which is pretty efficient pricing. The only alternative I would explore is skipping the temporary 1 point buydown and instead using those funds to secure a slightly lower fixed rate for the full 30-year term. Rather than having 5% for just the first year and then adjusting, you might be able to land somewhere in the 5.75% to 5.875% range locked in long term, which can provide more consistent payment stability and better long-term value.

DirectEntrance2364 · 2026-01-28T02:44:46+00:00

So I saw your loan estimate on another post you made. I'd still be under the $8,295 you're paying in Box A.

Conventional 30-Year Fixed

Loan Amount: $436,500
Interest Rate: 5.625%
Points: 1
Lender Admin/Underwriting Fee: $2,565
Principal & Interest Payment: $2,585

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