Find out more on Debt Consolidation Credit Counseling In Phoenix Now!
Sunday, December 28, 2008
In a refinance transaction there are certain areas you must pay attention to when comparing quotes.
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.
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.
A lender that has done the work to ensure their clients are getting great deals on the third party fees while having no financial gain by doing so is keeping their customer's needs as a priority. By helping leverage their loan volume to pass on better fees to you they are helping you lower your overall fees and this is a priority.
Estimate Date: Since the mortgage market is very volatile make sure you are comparing estimates from the same day. Even if you are not ready to make a decision today you can narrow down your options and find the company you want to work with by comparing who has the best offer for that day.
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.
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.
A lender that has done the work to ensure their clients are getting great deals on the third party fees while having no financial gain by doing so is keeping their customer's needs as a priority. By helping leverage their loan volume to pass on better fees to you they are helping you lower your overall fees and this is a priority.
Estimate Date: Since the mortgage market is very volatile make sure you are comparing estimates from the same day. Even if you are not ready to make a decision today you can narrow down your options and find the company you want to work with by comparing who has the best offer for that day.
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.
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
12:37 AM
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