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: Title and escrow fees are not determined by a lender. Lenders usually have preferred vendors they use for their service but they are not financial compensated by these companies. You may have heard that these fees are the same no matter who you use. This isn't always the case. The reality is some lenders do a better job of aligning themselves with partners that are cheaper.
If you really want to dig and get the best deal sometimes you can capture savings by choosing a lender that works a tiel and escrow company and has bulk rates for all the services including title, escrow, loan signing fee, and the major endorsements.
The bulk fees from title and escrow companies are almost always less because they are being controlled by the same company and the economies of scale allow them to discount the title and escrow piece which in turn gets you a better overall cost.
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.
With the right information and expectation getting a mortgage can be a breeze.
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: Title and escrow fees are not determined by a lender. Lenders usually have preferred vendors they use for their service but they are not financial compensated by these companies. You may have heard that these fees are the same no matter who you use. This isn't always the case. The reality is some lenders do a better job of aligning themselves with partners that are cheaper.
If you really want to dig and get the best deal sometimes you can capture savings by choosing a lender that works a tiel and escrow company and has bulk rates for all the services including title, escrow, loan signing fee, and the major endorsements.
The bulk fees from title and escrow companies are almost always less because they are being controlled by the same company and the economies of scale allow them to discount the title and escrow piece which in turn gets you a better overall cost.
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.
With the right information and expectation getting a mortgage can be a breeze.
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