3% of the loan amount covers will generally cover the closing costs and the pre-paids (taxes, home owners insurance, etc) that the lender would have on hand should you default on the loan. Pre-paids are generally re-imbursed at the time of selling the home.
FHA has an additional upfront mortgage insurance fee (2.25%)
VA has an additional upfront mortgage insurance fee (changes based on use times)
At times it is also advantages at times to pay the rate down up front also.
Credit scores can impact the amount of upfront mortgage insurance that you need to pay. The upfront fees are generally also based on credit scores.... more
Forget the phone - go to the office and talk with the broker and/or office manager. Bring photos if you can. If you used an attorney contact them as well. Sounds like you didn't have a final walk-through a day or two prior to closing. Remember - the squeaky wheel gets the oil.... more