Scott, two things, I would recommend going with a articulating hitch, not for the up and down, but for the twisting, IE right trailer wheel 6 foot up on one side. It can twist the trailer off the ball hitch. Not something to worry about, but it does happen, and when it does, the hitch is normally unusable afterwards. Also, having the front two inches lower is not a terrible problem. Normally the trailer tows better at high speeds set up that way. I have ran mine that way for many many years. Was taught to build the frame/trailer for that. Seldom can it cause a problem, IE dragging even on the toughest of trails.
Bob