There are two types of mortgage rates: quoted and real.

Quoted rates are not relevant to your loan scenario because each person's situation is different. They are the generic rates found on websites, and it's what you get when a lender gives you its rate without drilling down to your specific situation.

A real rate is far more accurate because it is based on many factors, not just your credit score. For example, a real rate is based on factors such as how much you are putting down, income and asset documentation, occupancy type, and employment history, just to name a few. Unless the lender knows these things, it is impossible for them to give you a real rate that's relevant to your situation.

Unless you have a real rate, you cannot plan or budget reliably. For example, unless you have verified that your rate is real, it is not uncommon to find that your rate, payment, and/or fees suddenly increase when you get ready to close. But, by then it's usually too late to do anything about it because your closing date is fast approaching.

How do you verify you have a real rate? Always have the lender send you three things:

1. A copy of the complete mortgage application (the 1003).
2. A good-faith estimate (GFE).
3. The initial truth-in-lending (TIL) document (focus on the APR).

If a lender won't send you these three things, it should raise a red flag that the rate they quoted you isn't your real rate.

Our mortgage specialists will give you a real rate and the three things you need to verify that it's real.