In a refinance transaction there are certain areas you must pay attention to when comparing quotes.
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: 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.
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.
When the third party fees are all coming from the same company lenders are able to negotiate better deals for their clients. When title, escrow, and notary are all coming from the same place the company is able to get a little more aggressive with each piece.
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: With rates changing so often make sure you are getting estimates from the same day to be able to accurately compare companies. Rates change daily; sometimes multiple times a day.
Trust: A good faith estimate is only as good as the company who sends it to you. Far too often unscrupulous people will be less than honest in order to win business. Make sure you look into the company and learn about how they operate. Do they post their rates for you to see online so you know their rates upfront? Make sure you have at least been able to get some mortgage information on their website so you can feel comfortable working with them.
Good luck in your search! This is an important decision for your financial future. Make it a pleasant and beneficial one!
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: 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.
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.
When the third party fees are all coming from the same company lenders are able to negotiate better deals for their clients. When title, escrow, and notary are all coming from the same place the company is able to get a little more aggressive with each piece.
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: With rates changing so often make sure you are getting estimates from the same day to be able to accurately compare companies. Rates change daily; sometimes multiple times a day.
Trust: A good faith estimate is only as good as the company who sends it to you. Far too often unscrupulous people will be less than honest in order to win business. Make sure you look into the company and learn about how they operate. Do they post their rates for you to see online so you know their rates upfront? Make sure you have at least been able to get some mortgage information on their website so you can feel comfortable working with them.
Good luck in your search! This is an important decision for your financial future. Make it a pleasant and beneficial one!
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Before committing to a mortgage company visit this site to compare mortgage rates and request a good faith estimate.
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