Cash to Close drastically different between lenders?? (loan, interest rate, credit)

[the_grimace]

Hello, I am a first time buyer and I'm super confused about closing costs and cash to close. Purchase price is 168000 and we are doing FHA with 3.5% down

I got closing costs estimates from two lenders, and the closing costs and cash to close varied drastically.

Lender A: (mortgage broker)
Closing Costs = $13824 (sum of loan and other costs below)
Loan Costs = $6096
Other Costs = $7728
Lender Credit = $2794
Closing Costs after Credit = $11030
3.75% Interest Rate
Cash to Close = $4875?? (They gave me $2995 seller credits, and $5582 credits for "other adjustments and credits" Broker wasn't clear about explaining where these came from)

meanhile...

Lender B: (direct lender)
Closing Costs = 14391 (sum of loan and other costs below)
Loan Costs = $10403
Other Costs = $3988
Lender Credit = $1034
Closing Costs after Lender Credit = $13357
3.85% Interest Rate
Cash to Close = $14,910??! (No seller credits or other credits listed, both $0)

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So... I am super confused. I was inclined to go with Lender B since I felt Lender A was bad about making big promises they couldn't deliver on and they were also poor about explaining closing costs and credits. Lender B seemed much more upfront and their company had good reviews, but the closing costs and cash to close look ridiculously high next to Lender's A numbers. Higher interest rate, ~$1500 less lender credit, no seller or other credits adjusted into cash to close... Lender B said they quote at the absolute highest current market rates, but expects to need much less cash to close, in my case he said I would need about $10500, which still seems high compared to lenders A number, but then again I have no idea how lender A calculated that number.

Also, I am so confused about the downpayment. Both lenders already said it was factored into cash to close, but since I'm not seeing it in black and white as a cost, I don't know how they calculate this in... Is the downpayment already included in their cash to close numbers? (It is ~$6000 considering 3.5%)

All and all, currently working with lender B but now second guessing myself and wondering if I should switch back to Lender A while I still can. I really have no idea what to expect as "fair" with closing costs and cash needed, and I'm afraid of being overcharged and ripped off. What do people think?

EDIT: I think it's interesting total closing costs almost equal the same between the lenders, but what's ironic is the way costs are labeled and priced. Identical items are labeled and priced different between the two lenders, but it all balances it out in the end. What a ploy!

[aramax666]

whats the APR on the two loans?

[SmartMoney]

Suggestion: take both estimates to both lenders and ask for them to explain the differences. I have (and will continue to do so) tell the borrower they are better off with the competition, but should things turn around before they close, I very well may be an option in the future. Funny, the way trust builds (but not everyone has the same work ethic). These folks have become my best referral sources!

I think someone, or one, is mixing apple and oranges. Upfront MIP could be in there, is one using 30 days interest and the other 1day. Is one more deceiving? It should be pretty obvious if one is trying to pull the wool over your eyes.