Mortgage broker is selling us a home - HELP!?

We know a mortgage broker that is also a builder and a friend of the family. We went to him to get us preapproved for our mortgage loan, etc. After telliing him we were having trouble finding a home we REALLY liked he said that he had a home for sale on the side of town we were looking at and that we could look at... show more We know a mortgage broker that is also a builder and a friend of the family. We went to him to get us preapproved for our mortgage loan, etc. After telliing him we were having trouble finding a home we REALLY liked he said that he had a home for sale on the side of town we were looking at and that we could look at and if we liked it we could work something out. We looked at the home and LOVED it. Now we are in the position where not only is he working out our loan, he will be selling us a home. We are first time home buyers and very cautious as to potential errors we could make and what type of gain he is getting from doing all of this? We really don't want to be screwed but we don't know enough about all of this to know the difference and I'm afraid he will take advantage of that fact. Any advice? Any questions we should be asking? He has told us he will pay all closing costs, get us a 5% - 30 yr fixed rate, no points. Any advice is GREATLY Appreciated!
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