A couple of things:
- Is this a pre-APPROVAL or a pre-QUALIFICATION?
- If you have excellent credit, this is not such a good deal. APR of 6.23% when paying a point is not so hot, esp. for an ARM. (I was pricing 30-year fixed loans at around 5.9% APR with lower lender fees just yesterday)
- Have you locked the rate? Bankrate.com has a bunch of experts "predict" where rates are headed. FWIW, they currently think rates are headed lower, so if you trust that advice, you might not want to lock just yet.
- I don't know any lender that doesn't charge PMI for 0 down (unless this is a VA loan, maybe? An 80/20 maybe?) Luckily, PMI on houses purchased this year will be tax-deductible, and for low down payments (I will be making a low down payment on the house that I will purchase to live in through medical school) it seems to me that a 95% loan + PMI may be better than a 80/15/5, for example (though that didn't use to be the case.)
Now to answer your questions:
Not sure what 14-day period you are talking about. If this is a true pre-APPROVAL, they have already pulled your credit. Not so for a prequal, IIRC. It's best to shop rates/costs and have your financing lined up (and get prequaled -- not necessarily pre-approved) BEFORE house-hunting. Every time another broker pulls your credit, it will show up and your credit score will take a 2 point ding, IIRC.
You should've received a good faith estimate before prequaling/going through the pre-approval process. You really need to know what other lender fees are attached to that rate. If there are additional lender fees (underwriting fee, processing fee, some of them even add an internet application fee) you need to know about them, although they are rolled up into the APR (which isn't that great, IMHO, leading me to believe that there are additional fees, even above and beyond your origination point.) You need this ASAP. The lender can only provide an estimate of title insurance, fees charged by your title company/attorney, etc, but these usually only amount to approx. $1k or thereabouts (depending upon your state, etc)
Of course. Didn't he talk to you about all the products that they offer before you prequaled/pre-approved?
I highly recommend that you look up rates on
www.bankrate.com, sort by APR, and go from there. Be really careful with ARMs.