Your brokers behaviour is a red flag. Even if she was having “fax problems”, she is a professional and should act accordingly. Not providing such basic information as a GFE, much less the rate, in addition to wanting to buy down the loan against your wishes, points to abuse or incompetence. You really need independent advice that neither your broker nor realtor/builder can provide. With a little research, you should be able to determine yourself whats in your best interest, if you’re getting a fair deal, etc. If you’re still unsure, consult a trusted source (e.g. attorney).
This is a *major* purchase and as such you should put alot of effort into getting the best possible rate and terms from someone who is responsive, open, and courteous. My advice to you is:
0) Terminate your relationship with Joice.
1) Notify your builder & escrow co. that you may need more time to obtain a loan from a trusted source.
2) Compare rates and fees (GFE) from 3 sources.
Ask for the par rate and obtain all quotes at COB on the same day (apples to apples). For example, get a GFE from Citibank, HLS/Sheldon, and another lender.
3) Compare loans based on APR, rate, & fees.
Keep in mind that the APR is only valid if you keep the loan to term (ie points and/or fees that lower your rate & APR, could result in a *much* higher APR if you only keep the loan for five years – asking for par rates eliminates the points aspect of the loan). Also, only “800 block” fees should be used for lender comparisons. Make sure the terms don’t have pre-payment penalties, etc.
4) Choose your lender and lock the rate.
5) Have copies of all the loan documents sent to you a day (or more) BEFORE closing. Review these and compare them to your GFE.
Best of luck!
PS – As a benchmark, compare rates/fees to an online lender, such as:
