We're under contract for a new construction home and will probably be closing on the house in Mid November. I'm currently approved with a bank right now but am in the process of shopping around for rates. My bank is currently at 6.5% with 0points/origination fees.
So, using BankRate.com there are about 4-5 banks/brokers that offer lower rates (6.125 to 6.25) with 0 points/fees advertised. I called up two on the list, one is going to call me back the other said that their closing costs are ~2% of the loan, no points, etc. The guy wouldn't give me a "closing costs" sheet / good faith estimate over the phone/fax. Pushing for an appointment for someone to come out... so, I just put that on hold for now.
So, my question: Is there some kind of game unscrupulous mortgage brokers play? If I get a goodfaith estimate of closing costs, mortgage approval, and lock in a rate (30days ahead), can a broker change the closing costs/fees at the last minute? This is NEW construction, so, there shouldn't be any surprises in financing a loan, but, maybe there are tricks I should look out for???
So, using BankRate.com there are about 4-5 banks/brokers that offer lower rates (6.125 to 6.25) with 0 points/fees advertised. I called up two on the list, one is going to call me back the other said that their closing costs are ~2% of the loan, no points, etc. The guy wouldn't give me a "closing costs" sheet / good faith estimate over the phone/fax. Pushing for an appointment for someone to come out... so, I just put that on hold for now.
So, my question: Is there some kind of game unscrupulous mortgage brokers play? If I get a goodfaith estimate of closing costs, mortgage approval, and lock in a rate (30days ahead), can a broker change the closing costs/fees at the last minute? This is NEW construction, so, there shouldn't be any surprises in financing a loan, but, maybe there are tricks I should look out for???
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