There are three basic things that everyone shops for: CUSTOMER SERVICE, RATE & FEES!
When shopping rate, it is important to understand the majority of companies have access to the same rates. Therefore, if it sounds too good to be true, it just may be! A good benchmark for rates is to look at what the large banks are offering. If a rate is within their "range", it is probably accurate. The reason small companies can offer lower rates than large banks is because smaller companies have less overhead making profit margin lower.
The information below breaks out just how to read a closing cost estimate:
In summary, the only fees that should vary from company to company are lines 800-899! It is also important to remember that the lenders may pay a Yield Spread Premium to the mortgage company which is indicated on line 817 above (Line # may differ on all GFEs) and the borrower IS NOT responsible for this compensation.
After all is said and done, your client needs to feel comfortable with the rate/fee combination they're getting!
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