Closing Cost Comparisons:

One of the most frustrating things for borrowers is to compare closing costs, interest rates and loan programs presented by various lenders. For the process to produce credible results, you need apples-to-apples programs and honest, forthright, and competent mortgage planners. The bottom line is that lenders have very little control over closing costs and big discrepancies (either high or low) should raise a red flag.

At Trinity Mortgage, our internal fees are lower than most. Obviously we have to pay those that get you from step one to the closing table... paper doesn't move iteself and phone calls aren't 'automated'. =0)

We choose not to tack on additional fees such as a Broker Fee, an Application Fee, Origination Fee, Tax Service Fee, Discount Points, [note that the 'names for these fees are infinite]etc. which other lenders or brokers often charge.

Such fees are simply creative ways to generate additional income - especially if those lenders quote below-market rates and need to make up the difference.

We keep it simple by charging only the processing fee and quoting real interest rates. One possible exception is when the borrower decides they want to buy down the rate through the use of points.

If you want a true comparison of closing costs, look at the items detailed in the 800 Section of my Good Faith Estimate. That is where the aforementioned “other” fees are supposed to be listed.

All other sections, representing the balance of the closing costs, prepaid items and escrows, will be the same no matter which lender you choose. That is because these fees are set by, and paid to, unbiased third parties who charge the same fee for the same service.

Our job as Certified Mortgage Planning Specialists is to provide an honest and accurate estimate of these fees based upon our experience and market knowledge. If these third-party fees appear notably lower on one Good Faith Estimate versus another, beware. Either the loan officer is low-balling numbers to get your business (“it was only an estimate after all”) or they lack experience... neither being an acceptable defense.

A low Good Faith Estimate has no bearing on actual costs to be incurred at closing.

Either on purpose or by oversight, many lenders underestimate escrows (particularly real estate taxes and insurance) or other third-party fees to make the bottom line transaction expenses appear lower.

Another common oversight, particularly by out-of-state lenders, is the omission of intangible tax (line 1202) and Doc Stamps on the Note (line 1203) which are Florida-specific taxes and represent fairly sizable amounts. The State will require that these be collected.

That being said, I have created an Excel Spreadsheet which I use to compare Good Faith Estimates. If you like, I would be happy to use that spreadsheet to help you compare any Good Faith Estimates you receive (including mine). If another lender has a better offer, I will be forthright and advise you to finance with them – assuming they are credible. I am in the Orlando mortgage business for the long haul and will always present figures I can stand behind.

Thank-you for considering me as your mortgage lending source!  Please enter your situation below and we can take a casual look at it together to see if you are, indeed, going to close with what you are being promised.

Sincerely

Chris