Looking for some opinions on obtaining a 30 year fixed mortgage of 260k, as a first time home buyer. We are placing 20% down and have been working with a family friend, who we assumed would give us the best possible rate/service. I was concerned about his original rate of 4.375% so I obtained quotes from other mortgage companies. Amerisave, who offered 3.875% and they will lower their origination fee from $577.00 to $77.00. Our Credit Union, who we do our regular banking with, also gave us a rate of 4.0% with a $295 fee and said we just missed the credit score of 700 nessesary to qualify for their 3.875% rate by one damn point (699).
After telling the family friend, he offered us a rate of 3.875% but is charging a loan origination fee of $715.00. He also said Amerisave is an underwriter with tons of bad feedback and they do not normally recognize preapprovals from them, have to fix mortgages written by them, etc.
Should we go with the family friend? Any experiences with Amerisave?