Mortgage shopping tips
Today we are going to cover some more mortgage shopping tips. I am going to give you some great tips for saving you time and money on your closing costs.
As we discussed in a previous article interest rates and lender fees vary greatly from lender to lender and company to company. For this reason it is important to shop multiple companies as we have already discussed.
What we have not discussed is the ability to shop other aspects of your closing costs that are not necessarily controlled by your mortgage lender. Some of these aspects include your title company and closing fees, your homeowners insurance, any potential inspections such as surveys or pest inspections.
Shopping for a mortgage company in mortgage loan officer should discuss these third-party charges with him or her. Some mortgage companies will not allow you to select your own title company to do the closing.
I would suggest that you steer clear of these mortgage companies. Any reputable mortgage company will allow you to select your own third-party service providers with the exception of the appraiser.
You will never be allowed to select the appraiser, but you should be allowed to select the title company, land surveyor, or any other third-party service that is needed assuming that you are the one that is paying for that service.
This is important because some mortgage companies may own a title company that does their closings. If this is the case they will try to steer you to the title company because they make more money if you use their title company. Some mortgage companies or even mandate that their title company must be used if you do a loan with them.
While that requirement is acceptable if their title company fees are competitive with the market, you must do your own research to ensure that this is the case.
I would suggest calling multiple title companies and requesting a quote for a mortgage closing and title insurance. You will need to provide them the loan amount, and the purchase price if the loan is to purchase a property.
If the loan is for a refinance you only need to provide them the loan amount. Each title company should then be able to give you a quote for their closing fees and title insurance premium amounts.
Once you have some quotes from the open market you can compare these quotes to the fees from the title company that you're mortgage loan officer would like for you to use. Shopping your title companies could potentially save you over $1000 or more depending on your loan amount.
Title services are usually one of the most overpaid for services in any mortgage transaction. There are so many title companies out there that will do these services very inexpensively but you have to find them on your own because you're mortgage loan officer most likely already has an existing relationship with a title company that they prefer to use.
Again let me clarify that it is not a bad thing if you're mortgage loan officer has an existing relationship with a title company that they prefer to use as long as that title company is providing fair and reasonable fees for those services. But it is your job to make sure that is the case.
Additional Resources:
Florida Relocation - Need locals to help us decide where to move!
Florida Relocation - Need locals to help us decide where to move!
Florida Relocation - Need locals to help us decide where to move!
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