Am I getting ripped off by this lender?

1 Reply

I'm buying my first house, using US Bank as a lender. During the preapproval process the guy told me my interest rate would be in the low 4's. Now that I sent in the actual property and he's saying it's 5.5%!! Which is WAY more per month than 4%.

Is this typical? Is it like a "bait and switch" technique or am I overthinking it?

My credit score is about 760, so I thought I'd get a much better rate than that. 

Thanks, and I'd appreciate any input you have on this,

-Zach

Hey @Zachary Schimenz ! Rates are always about 1 point higher with investment properties compared to primary residence rates.

I wouldn't work with US bank to finance an investment property. What I did, I sat down and spoke with about 5-10 community banks and credit unions, told them what I needed and listened to what they could do for me. They are a lot more flexible and often offer different rates/terms.