Comparing Mortgage Good Faith Estimates
Knowing how to compare good faith estimates from mortgage companies will help you make an educated decision when deciding which lender to use.
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.
Different title and escrow companies have different rates. The difference in savings can come down to who your lender has chosen to work with. Some companies have negotiated rates that include the signing service as part of the fees which saves you up to $200 which is a typical fee for a notary.
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 total fees on your transaction should be your main concern. A lender that has gone the extra mile to deliver third party fees that are cheaper has you in mind.
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!
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.
Different title and escrow companies have different rates. The difference in savings can come down to who your lender has chosen to work with. Some companies have negotiated rates that include the signing service as part of the fees which saves you up to $200 which is a typical fee for a notary.
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 total fees on your transaction should be your main concern. A lender that has gone the extra mile to deliver third party fees that are cheaper has you in mind.
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!
About the Author:
Before committing to a mortgage company visit this site to compare mortgage rates and request a good faith estimate.
posted by Credit Counseling at
12:38 PM
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