Mortgage or Bank for a first time HOME BUYER??

[Abner Sanchez]

So right now I am a bit in a predicament because I don't know whether to choose a mortgage lender or a bank for a home loan. The reason why I'm leaning towards going with Chase bank for a home loan is because they allow for me to put 15% down instead of the opposed 20% for a conventional loan and the house I'm under contract with qualifies for a $5000 grant as a first time home buyer (meaning that Chase Bank will cover $5000 of all fees) Which is a HUGE BONUS. I did the Math and I end up saving over $9,000 as opposed to going with the mortgage company. Now the mortgage company isn't as flexible and does not allow me to put down 15% because I was told that it would NOT work. And I know what you're thinking "why don't you just do FHA" while that is 100% true I cannot because it just Simply wouldn't work for this house. I ran the number for the house I'm under contract with and they are great. Overall great property. So Chase Bank sent me a Pre-Approval and these are the terms and I want to get your thoughts.

Mortgage Type: Conventional 30 year Fixed

Interest Rate: 6.625%

Points: 1.033%

Apr: 7.077%

15% Down

$5,000 in credit towards Total Fees

** REASON WHY I WANT TO PUT LESS DOWN IS TO HAVE MORE CASH RESERVES IN CASE ANYTHING GOES WRONG**