It's Important to Flex Your Muscles
As a Mortgage Borrower
It's fairly common to see and hear advice provided about the importance of comparing Mortgage Lenders when looking to finance a home purchase or refinance. Advice is also commonly given to conduct comparison shopping when it comes to Interest Rates too.
But it's important for Borrowers to know: They can "shop" other Fees charged within the financing of their home loan as well ...
Here in Illinois: The newly introduced "Loan Estimate" document clearly illustrates which Services/Fees applicants can and cannot shop for when financing a home. Mortgage Lenders are obligated to provide this information to their Borrowers.
So which Services fall under each category?
Services that CAN be shopped:
- Settlement Fee
- Lender's Title Insurance - Title
- Attorney's Fee
- Endorsements & Misc. - Title
- Doc Fee - Title
- Recording Services - Title
- Wire Transfer - Title
- Closing Protection Letter - Title
Borrowers should be Aware: Vast differences in Fees can exist between providers for these services ... as well as the level of the professional's expertise.
Gaining referrals and Fee quotes for these services is just as important as those sought for the services of Lenders or Agents.
Especially important, is seeking the advice and guidance of a Real Estate Attorney ... an attorney educated, knowledgeable, and active in current real estate transactions. Not just any attorney will do.
Services that CAN'T be shopped:
- Flood Certification
- Mortgage Insurance Premium
- Credit Report
- Appraisal Fee
The above-mentioned services and their coordinating Fees, along with the Lender's Origination, Processing, and Underwriting Fees equal the Total Loan Costs charged to Borrowers.
Taxes, applicable government fees, possible escrow fees, and other miscellaneous fees may round out the Total Closing Costs charged to a Borrower.
Choices do exist for Borrowers. It's important and wise that they take the time and flex their muscles when and where they can as it pertains to the choice of their professionals, as well as the Fees associated with their services ...
* Hoping to buy a home in the greater Chicagoland area? Contact me today. I'll put my 37 years of mortgage experience and expertise hard to work on your behalf.
I can be easily found at:
Mortgage Lender - NMLS #216987 - IL Lic. #0006220 - WI Licensed
American Portfolio Mortgage Corp.
Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.
Your Referrals are Greatly Appreciated!