[smokingrobot]

im a mortgage broker:

for the best rate, you might consider paying a 1 point, but make sure you get quotes from 3 people.

ask them ALL to send you a GFE (good faith estimate). That GFE should be pretty close to what you would be looking at at closing. Also, a good comparison is your APR rate. The APR will include all the fees and is the % rate you use to compare one loan against another in terms of fees. Be weary of APR's less than or exactly at your interest rate. Your interest will/should always be lower than your APR. This does not mean you interest rate IS the APR however.

You'll also want to supply as much as possible up front so you dont get into a back and forth with them asking for more crap. Dont just cough it up, but ask the broker or whoever you are dealing with to supply you with a list of things you will need to give them.

it will include things like 2 pay stubs, 2 months bank statements, W-2's or 1099's etc etc.

Inevitably, the underwriter's will then ask for a few more things down the road, but it will make things easier.

Dont give out your SS to everyone. If there are 3 companies that you are talking to that seem to not be BSing you, then go with them.

An 80/20 is not 20% down. An 80/20 means a first and a second mortgage: 80% 1st, 20% 2nd.

This avoids PMI if you are a FNMA Prime borrower (middle FICO above 600 usually).

PMI comes into play when you borrow above 80% of the value (as determined by the purchase price) in a FNMA loan. If you go with a subprime, there is no PMI, but the rate is higher, so you're pretty much in the same situation as if you paid PMI. A higher rate means you'll be paying that till you refinance or sell your home, PMI will fall off after the mortgaged amount reaches 80% of the value of the home. If your area is appreciating, you may end up only having to pay PMI for 6 mo's to 1 year.

PMI amounts vary depending upon your downpayment and the coverage demanded by the PMI company. There is no exact science to it.

If you are not getting a prime loan, go for a 2/28, dont demand a fixed. 2/28 means you have a fixed rate for 2 years, after which it adjusts upwards.

Right before the adjusment period, refinane, and hopefully by then your credit will have improved etc.

If you have any other questions, PM me. What state are you purchasing in?

Another good idea is to get quotes from a direct lender, like Wells Fargo, a mortgage brokerage outfit, and your Bank, if they are willing to write you a loan.

If during the process you have any questions, feel free to write me and i can help you out all you want.