Be sure to compare any BANK lender with a mortgage broker. Ask for a "truth in lending statement" from each then ask the other to compare it (it's amazing how they'll tell you things about the OTHER that you won't hear directly from them). Here's something you should know: Banks do NOT have to disclose the money they make like traditional mortgage companies do....they have different rules allowed by the federal government. There's a great article online at http://mortgagecents.blogspot.com/2005/11/local-banks-vs-mor that gives an overall comparison. So do you homework....afterall you're going to be paying for it over the next several years.
Michael D Delp
4802 Old Bethlehem Pike,
Telford Pa. 18969
I'm sure that if they are paying closing costs, they are getting their money back somewhere else, which is usually a slightly higher interest rate.
I have actually represented a buyer who closed one of these loans. Credit score was around 660. On the HUD(settlement sheet) the appraisal, title insurance, recording and notary fees were POL.(paid by lender). What you need to do as a consumer is ensure that you are still getting the best rate best on your qualifying circumstances. What some will do is make your rate .25 or more higher than the goin rate to make up for those fees paid by the lender.
I had a client who only had to pay taxes, and we used BOA title company so there was no title fees. However, it is a difficult program to get into. When I tried to get another client into it, it didn't work. It may have actually worked out better that I was able to get them an 80/20 loan and a 3% seller's assist. There is always a program out there they will be better suited to your needs and qualifications. Bank of America is a good place to go. I know one of the bank manager's there personally. His location is 10th and Chestnut. If you have any detailed questions, he can help. His name is Kareem Thomas, and his phone number is 267-886-1064.