GFE costs, brokers vs direct lenders - offer accepted!

[Anonymous]

Howdy,

I've been lurking here for a few months but now I need some advice!  My broker  has about two hours of work in with me, but now I'm balking.  The GFE seems really high, as does the APR.  I'm all for people being paid for their work, but...I've seen some comps of rates/points/estimated closing costs (and I know, they could be bait and switch) that seem much lower than mine.

Here's my scenario:

Offer accepted in Tennessee

Loan amt including USDA insurance premium: 83,691.00

My mid score: 709

My DTI (if I did it correctly - total pmts including mtg/total gross income) 35%

Primary residence

I'm employed same job five years

Chp 7 BK cleared in 2003 due to divorce, no lates since then

I have two credit cards - both I used regularly and then pay off in chunks but never all the way because they then cancel them...lol

Max outstanding credit line between the two cards is 1500.00 - current balance total is 1000.00 

The rate I was given on a 30 year USDA Guaranteed loan was 5.75 with 1 point

The APR shows 6.293

Seller is paying 5K towards closing costs, which suddenly now are more than 5K. 

My offer has been accepted and now I have a slew of paperwork, and suddenly I'm not sure this broker is the best financial choice.  Although I qualified for the loan on my own, my husband just died two weeks ago so now every dollar counts and I don't want to throw it away unwisely because I won't have his income to 'supplement' my little cash stash (no insurance, so no help there)   

Maybe I'm just freaking out because it's HERE, the home is on its way to being mine, and I'm second guessing myself. I work nights, so that's why I'm posting so early in the morning.  Am I freaking out unreasonably?  Can I provide any additional info that might help?

Thanks in advance for your input.

~SE 

[XAVIERSMAMA]

Look over the itemized list in the GFE.  Things like fees to prepare documents and courier fees might be included and these things can be negotiated.   

[DallasLoanGuy]

the fees in the 800s section except for the appraisal is controlled by the loan officer.

dont get too worried about what a fee is named. worry about what the TOTAL fees add up too.

brokers and bankers and banks can have similar fees.

higher fees = lower rate

lower fees = higher rate

so you have to compare both and decide which is good for you

[BrianB_The_Loan_Professor]

The truth is on a smaller loan things are higher

Thats not to say you shouldnt get a second offer but your probably should have done that sooner than after you have a contract

A direct lender may be able to save you a little on that size loan but probably not much

certain fees will always be the same

others will be basedon loan amount

You may try and negotiate a better rate and see what happens

Good Luck

Brian

[Anonymous]

I think I was just having moments of panic, and afraid that I will run out of monetary units before I actually get into the house, due to my changed circumstances.  I will ask for a better rate, or some reduction in fees, but the one poster was correct, I should have gotten a second opinion before I was this far along.

Thanks for being a good sounding board!

~SE