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: 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.

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: 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.

The more informed you are the easier your loan process will go.