Get at least 3 good faith estimates from a bank or brokers. Compare not only the rate, but very importantly the closing costs. If you are going with a traditional 80/20 and you don't want to come out of pocket, tell your broker to find a bank that will allow 6% sellers concessions(remember that word), that should cover your closing costs, maybe even your escrow(Taxes and insurance paid monthly) if you choose to go that route. But make sure the extra cash, if any, isn't going to them(At least not too much). Find people you trust to handle your loan, whether it be a friend, good word of mouth, or a trusted bank. You would be amazed at how many ways there are to f**k someone over. I would stay away from any arm, especially an "option arm" with 4 different payments at your discretion every month. One of the payments is 1%, sounds great, until you realize that every time you make that 1% payment it is in fact a NEG AM payment, meaning your balance actually goes up. Interest only loans are ok if you are confident that your house will go up in value and your career is upwardly mobile. Also don't be afraid to ask your broker what they are being paid on the Yield, 1 point = 1% of total mortgage, meaning a 200,000 house paying 1 point on the yield would make them 2,000 plus the closing costs. Brokers are trying to squeeze as many points in the front and the back as we can, so be careful and shop around. I am rambling, if you have any questions ask me, I have been a broker for 8 years.
