How to Compare Lenders and Closing Costs

When purchasing or refinancing a home, everyone wants the best rates. But how do you even begin to shop around? You can’t only look at interest rates when comparing lenders. You have to compare the lender/investor fees in connection with the rate.

Lenders prepare what is called a “good faith estimate” of the closing costs.  They are required to mail it to you within 3 business days of receiving your application. You may want to shop rates by comparing the following: processing fees, administrative fees, underwriting fee, application fee, credit report fee, rate lock fee, etc. and points charged in connection to the loan. Prices can and do vary widely. With this information you can make a more informed choice, and don’t forget, some fees are negotiable.