No Deal

***WARNING: THIS IS A LONG POST***

Wow where do I even start? Befor we start I want you to know that we would much rather do financing through USAA but they dont offer FHA loans, only conventional or VA. So most of you know that Ryan and I are IN PROCESS of getting a house. Well a lot of stuff went on in just a few days. We were pretty close in closing...we were coming up on the end of inspection period and was in process of getting the appraiser to the house.

Lets do a little recap on what we were doing. We have a realtor, a broker for our loan getting a FHA loan. Everything was going great and we had already paid the inspection guy to look at the house and it seems all going so well, infact we even took our family out there to look at the place.

The broker went over what we will be paying from the Good Faith Estimate and everything seemed fine there and everything was good. Untill Monday I had a thought that popped in my head that Ryan and I should call USAA and get a quote of Good Faith Estimate from them. Now keep in mind that Ryan and I have already thought about USAA, but knowing that they dont do FHA we did not even bother. Some reason though I had Ryan call them regarless even if we are not going to use them.

I COULD NOT BELIEVE THE RESULTS! With our broker in the end our mortgage payment would be high $600. USAA which remember this is a quote of an conventional loan in the end the estimated mortgage was low $400...$200 DOLLAR DIFFERENCE!!!!!! Where does that money go? I know that there is a fee for the broker and I understand that, but what about the rest? Then we called AZ fed and they gave us a way better quote then what our broker has given us for FHA loan as well.

Obviously from this newly known information we could not go through with the original plan of using the broker. I had a real hard time with this because I felt so bad that the broker has worked so hard on this and then we just pretty much rip the rug right out from under him. Poor guy. What are we to do though, would you have done the same in finding a better lender so you dont pay as much?

In the end making a change like this of a different lender really is messing with too much between us and the seller so we decided to take back our offer. We had thought about just going through with it then refi later or try and see if we can get an extention, but we both were so uneasy with the decision that we though if it is this undecisive we should just be done with it and look again later.

It is good to know of the different options that we have when we did not know of the difference before. I just wish that there are more people out there that looks for OUR best interest then not. We are very thankful and blessed to know of this before it is too late.

I think we are going to try to save more money for down payment because if we do conventional loan that is 10% down instead of the FHA 3.5%. The end.