1. You can’t get accurate quotes without talking to a salesperson.
We all want six pack abs and buns of steel. But no matter how much we cut back on the pizza and beer, we eventually have to break out the work out gear and head to the gym. Well, unfortunately, this is the same with finding a mortgage. The Internet, although an extremely useful tool for many applications, has its limitations. Due to the amount of money involved and how mortgage rates are calculated, it takes a human being to match mortgage terms with your personal financial qualifications. I take pride in the fact that I HATE selling, so my approach is to ask questions, listen to your concerns, and offer you advice and the best terms possible.

2. You like your current loan officer, but are you getting the best deal?
You owe loyalty to your family and your dog, but not your mortgage lender. Don’t get me wrong, I appreciate and cherish my loyal clients. But they are loyal because I bust my butt to make sure I give them competitive rates and terms and put their best interest over mine AND they know I will be straight with them if a competitor offers a better deal. One of the main reasons why I chose to work for our company, is 97% of the time our rates and fees are lower than the competition. (I could explain how we are able to offer such good terms, but you would fall asleep after paragraph three.)

3. You found the best rate, but do you trust the company?
Would you marry your fiancé after you caught her playing footsy with your best friend after too many shots of tequila? If you have ANY second thoughts or doubts about the company or loan officer you are working with, whether it is an internet company, a local broker or a large bank, walk away. Though the mortgage industry is making progress, the majority of the loan officers (And real estate agents, but I am trying to stay positive), are unsuccessful salespeople trying to pay their rent. This is not someone you should trust handling your largest financial obligation.

4.  What are legitimate closing costs anyway?
Remember the last plane ticket you bought online? You grabbed a round trip to Vegas for $295, and although you might be stuck between two future contestants for The Biggest Loser, you are psyched because you just saved enough money to have a head start at the blackjack table. Your excitement is then dampened by the fact you have to pay taxes, surcharges and booking fees, but what the hell- it’s Vegas! Finally, a month later, you go to check in your luggage and the airline charges you an additional $45 because your second bag is 3 pounds over the limit. Welcome to the mortgage industry!

By law, a mortgage company has to disclose every fee that they are charging a client directly or any third party fees (i.e. Appraisal). This is why, when you get a good faith estimate (GFE) with 32 different fees from a lender, you feel even more overwhelmed by the mortgage process. So what fees are required to complete your mortgage? For the sake of simplicity, (and sanity) I will assume the transaction is a single-family home purchase with only one mortgage. I will then list my fees so you have a baseline to shop with.

Now you can’t expect either a mortgage company or real estate attorney to work for free, as there are costs to being in business. However, this is where you pay for how efficiently run the mortgage company and legal firm are operated.  You also have the option to have the mortgage company pay for your closing costs by offering you a higher interest rate, but assuming you don’t, here is a baseline of what fees you should expect to pay: