Can someone please take a look at my GFE? (PMI, loan officer, interest rate)

[Metrix1234]

Can someone please tell me what they think of my GFE. I would also like to know what item lines I can look into reducing and/or removing, and where my money is going exactly for down payment, tax/insurance, and loan fees. Also what should I be looking at when I compare GFE's from different lenders?

[Modification Specialist]

3% down FHA loan, 5% fixed, your PMI is going to drop off in 5yrs. Looks good

As for as the payment you have two options - you could roll many of the fees into the interest rate. Your rate goes up, probably end up with a higher payment, but less cash up front. Your other option is to buy down the rate - resulting in a better interest rate, and a lower payment.

Do you understand what line 1108 (not tax) title insurance is? This is to make sure their are no other liens against the property before you take ownership. Lenders require this.

Years ago I remember hearing about this housing development in upstate New York. Where a great grandson of an Indian chief went to court to prove he was the legal airre to the property. He won in court. People with no title insurance basically lost their houses.

In the years I was a loan officer - dealt with many borrowers that nickel and dime closing costs. You got a pretty good deal.


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[Metrix1234]

Thanks for your help! So none of the closing cost really goes to principle then? Considering all the numbers are estimations what items should I be looking to compare when picking between GFE offers?

[VictorBurek]

Originally Posted by Metrix1234

Thanks for your help! So none of the closing cost really goes to principle then? Considering all the numbers are estimations what items should I be looking to compare when picking between GFE offers?

You have a great offer with this quote. No junk fees and a good rate. By the way, the down payment on fha loans is 3.5%.

[jshlee]

My experience with a GFE is that the lines in 08xx are usually accurate because that's what the lender can control. The other costs to the GFE are out of the hands of the lender so they can fluff it up or guessitmate all they want. So don't use the GFE to accurately figure out how much you will need for closing. It might be less, or in most cases, it will be more. So your ~$1000 fess to the lender ain't that bad. Definitely would have been more with a more traditional lender like Wells fargo or JP Morgan Chase. I paid $725 for my lender fees after shopping around alot.

With that said, if you want to said a few more bucks, research the fees for title. The taxes, and the amount you need to put into escrow to pay for taxes are fairly standard and fixed. I was able to save about $600 in title fees because they didn't charge me the "discount rate". (*crooks*) But looking at your GFE, it looks like your area usually has either low title insurance fees and recording fees, or the lender just put whatever.

[Noiren]

Could someone take a look at mine please?

[Modification Specialist]

Noiren

Loan Amount $132,554.00 5.5% 360 Fixed going through a broker.

Line 801 - this is what your broker is going to get paid. Also mentioning YSP, charging you a higher rate, so they get a kick back from the bank there are placing oyur loan with. What can dispute both line 801 and the rate.

Line 803 - this is the money you paid for the appraisal

Lines 804 and below are considered Junk Fees - these are standard when you use a broker to do your mortgage.

A friend of mine was shopping for a mortgage and is getting ready to close. He's is part of his email.

..."I have a 717 middle FICO. My wife has an 805. We are putting 20% down. The mortgage banker's best rate was 5.25%. His fees were $1350 total w/ no points or origination fees. We were a hair away from signing. Then a regional east coast bank offered us this deal: 4.875% (4.883%apr) 30yr fixed with a total of $350 in fees. No points or origination fees. That's it. I honestly didnt think loans like that existed, especially for a guy with a Chapter 7 on his report and a few IIB accounts from 2004.


My friend is putting 20% down, and is going directly to a bank. If you have no issues, you might able to get a better deal if you tried a bank...

Good Luck...


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[suzie02]

Originally Posted by Metrix1234

Can someone please tell me what they think of my GFE. I would also like to know what item lines I can look into reducing and/or removing, and where my money is going exactly for down payment, tax/insurance, and loan fees. Also what should I be looking at when I compare GFE's from different lenders?

Your home insurance seems really high. Is that typical for your area? Did the lender chose it for you or did you select the insurance company yourself? That is the one thing you can shop around separately.

Originally Posted by Noiren

Could someone take a look at mine please?

Never pay origination fees. I agree that you have too many fees.


To both of you is this the only GFE you have looked at? My number one rule is to shop around. Get at least a GFE from 3 different lenders. Then you can compare them line by line. From there if you do not understand which one is a better then you can come back and asks us again.

[chet everett]

I sorta agree with Mod Specialist, with the caveat that it matters QUITE A BIT about the KIND of lender/bank you are dealing with. The fact is that a healthy banks that is smaller than the giants and bigger than the little fish are pretty rare. If you have access to one that MIGHT be the best option for people with SOLID FICO scores, because SOME banks do have systems to handle this kind of loan with less overhead than other sources. If the bank does NOT have that stuff in house in MANY CASES they end up basically running their mortgage origination department JUST LIKE AN IN HOUSE MORTGAGE BROKER and then you are double paying overhead costs.

Bottom line -- SHOP AROUND. I stress that basically EVERY BORROWER needs to get as far as they can with at three or so sources and make an effort for them to be DIFFERENT kinds of lenders -- it is pretty much a waste of time to contact three "mega banks" or three mortgage brokers or three credit unions or three small town banks, one from EACH category is the way to go and when you do it in a very SHORT time frame it does not hurt your credit or give slime ball types much of an out to say "...but but but rates CHANGED..."

Good Luck!

[SmartMoney]

National lenders have "canned" closing costs and have no way to know if your state's closing costs are correct or not. So, let me put it this way, if your state charges a 1% recording tax, it's going to be the same whether at Wells or at Chase. The tax escrows will also be the same, and the prepaid interest will be the same. So, if you are really going to shop lenders, use the same rate, request the same lock term (more on that later), and just compare lender fees. The title company, the state and county are going to be the same regardless of lender. To compare closing costs, you want to compare the numbers in the 800's.

The first estimate has a lender fee of $625 that strkes me as high, and then I see a $150 coupon. Have a friend or neighbor put a call into that loan officer for a GFE on a different property that they "are thinking of buying" and see if that lender fee is still $625. (Have them tell the loan officer they don't want their credit pulled, but last week it was 712). To me, it appears as one of the oldest tricks in the book, offer coupons, but increase your price.

The second estimate appears high to me for lender/broker fees. I would certainly get additional estimates.

Also, as a prior poster touched on, Title Insurance fees are negotiable in most states. Don't be afraid to shop title companies or attorneys. Ask them for a written estimate, and you will usually get their best price.