Rates can change multiple times a day, so anything you read in the paper is definitely at least a day old and anything on the Internet is more than likely not updated. Every rate you see has an associated price to it that is determined not only by the market, but also by the risk of you loan application. Risks in loan applications include, but are not limited to: credit score, loan to value, property type, state and possibly county where the property is and of course loan term and product type. When you see a rate advertised, you have to understand that the mortgage company is pricing that rate with all of the stars aligned to yield the lowest rate. I will give you some advice having been in the mortgage business for 13 years, call a few mortgage bankers, have a discussion with them, discuss rates (keep in mind that the rates can change until you lock), decide who you feel most comfortable with, do some homework on the banker (LinkedIn, Trulia, ActiveRain etc - see the link to my LinkedIn profile below) and then stick with your favorite. Trying to save an eighth to a quarter percent isn't worth the effort to bounce around when you are dealing with the most important transaction of your life.
If you would like some help with your transaction, please feel free to reach out to me. I can provide references.
Chase Private Client Mortgage Banker
The bank will also put a clause in the addendum that says that at any time during the process they can accept another offer if it's better than yours. I had a situation last year with this exact thing. My clients were in the process of trying to purchase a foreclosure and someone offered more money and the bank started to stall our process, my client got frustrated and backed out of the deal. My client spent $1500 dollars and got nothing. Several months later when it finally closed with the other offer, it turned out to be only $1000 dollars more. The bank purposely killed our deal for a lousy 1000 dollars. A good attorney would never let one of their clients sign these addendums.... more