There are various sections on a Good Faith Estimate that you need to compare in order to find out where to get the best deal.
Lender Fees: Lenders sometimes display their fees as one bundled fee or break them down so you can see where the money is being allocated. When comparing good faith estimates for the same rate from different companies you should start by focusing on the total lender fees. Points, origination, discount, processing, administration fees, appraisal fees, underwriting all fall into the top section of the estimate.
Title and Escrow Charges: While you will drive yourself crazy comparing title and escrow services especially since most of the deals are business-to-business deals between lenders and these companies you will see there is a difference in cost depending on the company you are paired with. When choosing a lender if their fees are $300 more expensive but the third party fees are $600 cheaper, the overall fees to you are less.
You can make up in savings by going with company that has a bundled third party rate that includes the notary fee.
Other companies that offer title and escrow services can charge less for each because they are capturing both pieces of the transaction. Companies that are solely escrow or solely title have no way to absorb costs and offer savings which drives up the consumer's total fees.
The most important thing is that these fees can be different and working with a lender that has your overall bottom line in mind is a benefit. A lender with no financial interest in this side of the transaction that still works to deliver a better end product is a lender you want to align yourself with.
Estimate Date: Check the date on the estimates you are receiving. The mortgage market is constantly changing with rates going up and down. If you compare one estimate from one company and another estimate from the second company and they are done on different days you cannot get an accurate gauge of who is more competitive.
Trust: The good faith estimate is just the beginning of your transaction. You feel comfortable in the way the company has presented themselves and with that they will deliver. Do they have any complaints against them? Your financing can be a very painless and transparent process as long as you work with the right company.
Good luck in your search! This is an important decision for your financial future. Make it a pleasant and beneficial one! - 16036
Lender Fees: Lenders sometimes display their fees as one bundled fee or break them down so you can see where the money is being allocated. When comparing good faith estimates for the same rate from different companies you should start by focusing on the total lender fees. Points, origination, discount, processing, administration fees, appraisal fees, underwriting all fall into the top section of the estimate.
Title and Escrow Charges: While you will drive yourself crazy comparing title and escrow services especially since most of the deals are business-to-business deals between lenders and these companies you will see there is a difference in cost depending on the company you are paired with. When choosing a lender if their fees are $300 more expensive but the third party fees are $600 cheaper, the overall fees to you are less.
You can make up in savings by going with company that has a bundled third party rate that includes the notary fee.
Other companies that offer title and escrow services can charge less for each because they are capturing both pieces of the transaction. Companies that are solely escrow or solely title have no way to absorb costs and offer savings which drives up the consumer's total fees.
The most important thing is that these fees can be different and working with a lender that has your overall bottom line in mind is a benefit. A lender with no financial interest in this side of the transaction that still works to deliver a better end product is a lender you want to align yourself with.
Estimate Date: Check the date on the estimates you are receiving. The mortgage market is constantly changing with rates going up and down. If you compare one estimate from one company and another estimate from the second company and they are done on different days you cannot get an accurate gauge of who is more competitive.
Trust: The good faith estimate is just the beginning of your transaction. You feel comfortable in the way the company has presented themselves and with that they will deliver. Do they have any complaints against them? Your financing can be a very painless and transparent process as long as you work with the right company.
Good luck in your search! This is an important decision for your financial future. Make it a pleasant and beneficial one! - 16036
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