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: You should start by comparing good faith estimates that are for the same rate. This will level the playing field and allow you to determine who has the best offer based on fees. The top section of the good faith estimate will have all of the fees from the lender. There are various fees so to make it easy concentrate on the total from each.
Title and Escrow Charges: These fees are not charged by your lender but they can be a determining factor to use a specific lender based on the rates they have negotiated for these services on your behalf. Some lenders will tell you that these fees are the same no matter who you choose. That just is not the case.
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.
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: You must ask yourself. "Has this company presented themselves in a way that I feel comfortable?" A good faith estimate is just an estimate and sometimes can change. You should work with a company that has a reputation for fair lending and honest accurate good faith estimates. Currently there are 8 Certified Upfront Mortgage Lenders in the country. This is a great place to start. These companies have been accredited with this certification based on their honest and upfront business practices and a strict set of loan presentation guidelines.
The more informed you are the easier your loan process will go.
Lender Fees: You should start by comparing good faith estimates that are for the same rate. This will level the playing field and allow you to determine who has the best offer based on fees. The top section of the good faith estimate will have all of the fees from the lender. There are various fees so to make it easy concentrate on the total from each.
Title and Escrow Charges: These fees are not charged by your lender but they can be a determining factor to use a specific lender based on the rates they have negotiated for these services on your behalf. Some lenders will tell you that these fees are the same no matter who you choose. That just is not the case.
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.
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: You must ask yourself. "Has this company presented themselves in a way that I feel comfortable?" A good faith estimate is just an estimate and sometimes can change. You should work with a company that has a reputation for fair lending and honest accurate good faith estimates. Currently there are 8 Certified Upfront Mortgage Lenders in the country. This is a great place to start. These companies have been accredited with this certification based on their honest and upfront business practices and a strict set of loan presentation guidelines.
The more informed you are the easier your loan process will go.
About the Author:
To become more informed visit this site to compare mortgage rates and request a good faith estimate.
posted by Debt Consolidation Loan at
7:38 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home