How to shop for a mortgage lender for your Tallahassee home

Some things are a given in buying a home in Tallahassee, Florida, and elsewhere. There are usually going to be fees, fees, and more fees associated with a real estate transaction. However, we can minimize the fees significantly by shopping around when looking for a mortgage loan.

Lenders can offer a one-bundled fee guarantee, or can offer many confusing, irritating fees. When shopping for a lender, I look not just at interest rates, and terms, but also at lender fees. The fees can be significant or minor, but typically, the buyer will need some money to cover the closing costs associated with getting a mortgage loan to buy a home. I would look at an online lender more than an established lender in an offline building structure,  since the costs will probably be less to you, the consumer, and less to the lender. After all,  brick and mortar has a high cost, and the cost passes down to you the buyer.  In fact, I have seen a great deal on a home, but the buyer went with a lender that offered  a not-so-great-a-deal on the mortgage end of the Tallahassee real estate transaction. The lender fees would be so unnecessary if the lender had been an online lender, without an elaborate network of office buildings and overhead.

There are three categories of fees in a real estate closing, whether in Tallahassee, Florida, or elsewhere:

1. Lender fees are the fees that a lender has control over. They can be presented as multiple fees, such as origination fees, administrative fees, transaction fees, processing fee, tax service fee, loan setup fee, funding fee, and others.  Lender fees can also be presented as one bundled fee, a guaranteed fee that will not increase ever. That is the
kind of lender I would use. Just like I would prefer a fixed rate mortgage over the potential risk of an adjustible rate mortgage, with the uncertainty of interest rate fluctuations. I like price guarantees in real estate transactions since real estate
presents big money.

We are often confused by the many different things we have to pay for when getting a
mortgage loan.   When you are out comparing lenders, you will find it much easier to compare lenders with one bundled fee instead of comparing many fees from one lender with many fees from another lender, which of course, take so much precious time.

2. Third-party fees are fees that the mortgage lender does not control, but however, may be able to negotiate the best deal on your behalf. I would ask the lender about this. The buyer does have input into many of the third party fees, and who does the work to charge them.  These fees include appraisal, inspection, title, survey, and others. These third parties are necessary to a real estate transaction to protect all parties to the deal, and are often required by law as well.

3. Then, there are the prepaids, such as prepaid interest, and prepaid taxes. Although you can compare lenders by interest rates and lender fees, it is not reasonable
to compare lenders by escrow items, or since these are fluctuating costs, and are undetermined by the lender.  Lenders can sometimes estimate third-party fees, however. Property taxes, and title insurance can vary by location, and timeframe.

Closing is easy to understand when the fees are apparent, and identified, and I find it much easier to think in terms of lender fees, third- party fees, including government fees, and escrow items and prepaids. I know what the lender can and cannot guarantee. I look for as many guarantees as possible  when searching for a mortgage lender. There are great guarantees out
there in the mortgage world.

Kenneth Fach, REALTOR, ePRO
Weichert, REALTORS-Anchor
1607 Village Square Blvd, Suite B103
Tallahassee, FL 32303
Cell 850-339-5753   Blog http://KennethFach.wordpress.com 
Web http://KennethFach.com

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