Bank or Broker, what to do???

[Anonymous]

Hi everyone,

I have a contract out on a house and now it's time to secure financing.... 

 I sat down with a broker a couple of weeks ago and he quoted me a rate of 5.5% with one point for FHA. I'm only getting 3K back from the seller for closing costs, and I'm already saving every penny for my 3.5 % down payment. Thus, I'm not looking to have to pay any points. The broker pre-approved me but I haven't been able to get a GFE from him after 3 attempts. He's asking me to meet with him with the fully executed contract in order to get the GFE. (???) 

I spoke with a LO at my bank last night and he said everything sounds good and the loan is definitely doable by my target closing date. He quoted me a rate of about 5.25% with no points.. AND his app fee is $100 less than the broker's.  I would like to officially submit a loan app. this week. I'm thinking that after I speak with the LO at my bank today, if everything sounds good and he can get me a GFE with 24 hours. I'll definitely go with him.  

My questions are:

Do all brokers charge points? And will I be liable for any fees payable to the broker since he pre-approved me?

Should I ask the broker if he can get me the same rate? And if he does, will the point be added somewhere else in closing costs, and not be called a point?

 Any info/advice will be helpful!! Thanx in advance!! 

[DallasLoanGuy]

1. call broker and tell them they are in violation os RESPA by not providing the GFE within 3 days of application. And that your next two calls are to the brokers boss and to HUD.

2.  Paying points = lower rate. Some people sell with points, some sell without. No, not all brokers charge points.

3.  Preapprovals are usually free.

4. If they charge you elsewhere for that point.... you will see it. Broker can simply elect to match the deal or pass on it. Their choice

[Anonymous]

Thanks for the reply! I remember reading on here that a GFE should be recieved up to a few days after applying for a mortgage, but I wasn't sure if getting pre-approved would be considered applying (I didn't pay an application fee yet). Either way, it's pretty annoying that I still don't have a GFE yet.

I have some calls to make.

Thanx again!

[Anonymous]

Just got Pre-approved and Locked-in with my bank @ 5.25% and NO points. They're even going to give me a $500 credit at closing!! Woo hoo!! God is good!! I'm happy with it :-)

The broker's a no go...

[WannaHouse]

Good for you!!