If you are happy with the level of service you are getting, I would urge you to move forward. The only question I would have is if this is locked or not. If it's not locked yet, you need to follow up and make sure it's still available.
Of course you should be sure your lender will be able to meet your contract dates, that's a given. You're not going FHA, so your lender should have no problem closing in 30 days or meeting your contractual obligations. Ask lenders when the appraisal will likely be delivered to underwriting, what the underwriting turn-around time is, etc. I'm sure your agent will help you with this, but not all agents get involved or even understand the basic process. You may have to do it yourself this time.
I have an long established local lender I work with, as well as larger ones and brokers, for different circumstances, but my buyers are encouraged to talk to more than one lender, and I know we have lenders to fall back on should something happen in escrow. Usually my smaller lender can handle any issues that another lender can't, and handle it quickly. And if my buyers already spoke to them, they'll already be familiar with the fees. Fees will vary, so look at the bottom line of closing costs you'll need to pay out of pocket, and the monthly payment.
Good luck with this, and let me know if you'd like some lenders to call.
When it comes to a purchase, timing is a key issue. At the end of the day you want to do what is best for you so before you decide to take your business elsewhere please take into consideration the key dates associated with your transaction and confirm that if you do go elsewhere that you will be able to meet the financing and appraisal contingency removal dates and the close of escrow date. I suggest that you do not want to be in a position where you are unable to meet these dates and thereby potentially lose your ability to compete the purchase.
If I were in your shoes I would also take into consideration that at least from what you stated the broker that you are working with has disclosed what they offered to you, discounted and delivered on it. You then evidently accepted this offer. Perhaps it makes sense to move forward with what you agreed to.
Credit score - .25%
Condo <75% -.75%
Total 2.25%....................not a bad deal!!
If you want to reduce the loan origination you can always raise the rate and the difference from a 5.0% rate and 5,25% is $17/month on a $112,000 loan amount.
I tell my clients that if the monthly payment difference is less than a really good large pizza vs. the upfront costs go for the higher interest rate. Besides think about the calories you will save by not hacing that pizza.
Your lender may have different pricing than I do but I think he/she is doing a good job for you. Good Luck.
Licensed Loan Originator
Amerifirst Financial, Inc.
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Mesa, AZ 85204
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Bank of America
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As an active Broker in the business for some time we have developed relationships with several banks over the years, and they take great care of our clients.
I'm sure there are great mortgage brokers out there, but in my experience their fees are routinely higher and we have had more problems with them not being able to deliver on loan programs promised to clients than when dealing direct with lenders.
I would ask your agent/broker for lender referrals as 2% also sounds high to me.
Lance King/Owner-Managing Broker