How to make sure lender is offering fair mortgage rate and not overcharging loan costs?

Asked by AshburnLover, 20147 Sat Sep 14, 2013

Hello, My house is ready for closing in couple months and am about to lock in the rate. I am thinking of taking 30 year fixed and comparing various options such as monthly PMI, 1 time PMI and 80/10/10 loan.

My credit score is 735.For a $520K house price with 10% down in Ashburn,VA area, as of today I am getting 5% rate with a 60 day lock. I was also charged 0.5 points as origination and 0.5% as mortgage broker fee.

I feel that I was overcharged for rate as well as origination and mortgage broker fee.How do I know the estimates I am getting are fair.

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Kay Dillon, Agent, Ashburn, VA
Sat Sep 14, 2013
Congratulations on your new home!

My recommendation would be to compare with other lenders...2-3 is a good idea. If there is a lender you would prefer but they aren't offering you the best rate, tell them that and ask if they can match or beat it.

Feel free to contact me if you need other lender recommendations.

1 vote
Sonal Goda, Agent, Reston, VA
Sat Sep 14, 2013
It does sound a little high. The way you make sure you are getting fair rates is compare with a few other lenders. You can compare with major banks in the area, like Wells Fargo, or Suntrust. If you would like a referral to a good loan officer, please contact me privately from my profile.

If you find lower rates/fees elsewhere, you can ask your current lender to match it - and they should at least reduce a little.

Thank you,
Sonal Goda
1 vote
Bree Lawrence, Agent, Leesburg, VA
Sat Nov 2, 2013
Hi-I always 'stress' to my clients to get at least 2-3 Lender Good Faith Estimates(GFE's). Dont feel bad, its like shopping for a car, but bigger. Do you go to the first dealer and take whatever he tells you;probably not. Shop around. If you need any names of some good lenders I have worked with message me.
0 votes
Beth Seifart, Agent, Leesburg, VA
Thu Sep 19, 2013
I agree that this seems high. Definitely shop around with other lenders. I can also recommend a couple of lenders. Also think about how long you plan on staying in the home when it comes to PMI. If you think you are going to live there less than 6 years that can make a difference in which choice of monthly PMI versus 1 time PMI.

I hope this helps!

Beth Seifart
Keller Williams Realty - Leesburg, VA
0 votes
Loren Smith, Agent, The Woodlands, TX
Tue Sep 17, 2013
Hi Ashburn Lover,

If you haven't already locked in your rate, the best advice is to shop around for lenders - just like you shopped around for houses. And who doesn't love shopping? :)

Please feel free to contact me if you have any questions or would like some recommendations for lenders I trust.

Best of luck!

Loren Smith
Re/Max Gateway
0 votes
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