March 22nd, 2015 5:17 PM by Rose Tignor
This difference in reporting requirements is why you’ll see an enormous difference in a GFE from a broker versus a GFE from a lender. The costs from the broker may seem high when in reality brokers are able to offer “lender credits” to offset the charges.
The most important factor to consider when comparing GFE’s is using an apples-to-apples comparison. Compare the quoted interest rate, term, loan type, and required funds to close. Many times brokers can offer lower rates and lower required funds to close even though the total costs may be higher than what’s disclosed on a lender GFE. Don’t fall into the trap of only looking at the total cost of the loan. Origination fees are one of the largest fees paid in connection with a mortgage; however other fees will be discussed in subsequent posts.
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