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The simplist way to end the confusion between the Good Faith Estimate and the HUD-1 is to make them exactly the same and require the closing agent to put the expenses on the HUD in the same line items as the Good Faith Estimate. For now the best way I have found is a website closingcostfax.com. The site compares the Good Faith Estimate to the HUD-1 and details any differences between the two documents. You can easily see if you are being overcharged and for what expenses. The site also gives you great information on how to negotiate with your mortgage broker or lender and can save you a ton of cash.

It's nice to see an article that helps consumers against unscrupulous mortgage people that plague our industry. I am a licensed mortgage banker in Colorado and have been a part of the 'cleaning' process for our state. Comparing GFE's is like going to a used car lot though, if you have a good, honest broker/banker that discolses EVERYTHING up front and compare it to someone that intentionally low balls everything; how is this justice for the borrower. Statistics show that 90%+ of consumers will sign for the home no matter what due to embarassment or to alleviate losing earnest monies. So anyone can 'make up' a GFE only to find 'oops' we forgot this or that. Why can't a conusmer go to several brokers/bankers and ask for their best effort GFE without divulging anothers GFE and then compare them. Then and only then do you get to see the 'TRUE' intentions of the banker/broker. Communication, conciseness and education are the tools for success.
As per the application fee, I do not...(Read more of this comment) charge one and I truly think that is a 'junk fee.' In our current market place things are changing so rapidly that one day a program is available, the next it is not. Is this something to blame on the applicant? As well, when this happens in the middle of the process and an appraisal has been ordered, then the program is eliminated does the client still have to pay the appraisal. Of course they do. What happens when another broker/banker gets this file and can close it. The appraisal that was paid for and application fee that was paid for isn't refunded, is it? And we all know that the appraiser won't/can't recertify the appraisal to anyone else although the client 'owns' it, so they have to pay for another appraisal. Will the application fee paid to the other broker/banker pay for this extra cost, absolutley not!!!! So, if we all just collected 'application' fees would we need to close any loans????????????(Show less of this comment)

Don't forget the State fees that are part of closing. Many States impose this fee and in Florida it is around 1% or 2% of the loan amount. The fee can be the highest part of your closing cost

Don't buy professional services based on costs!?!? I think most doctors, lawyers and lenders would agree with that but a consumer should not. All 3 tend to gauge your eyeballs out with excessive fees. They tend to prey on the ignorant who don't do their homework and comparison shop. Costs are just as important as the service you're paying for. Do your homework with ANY service you purchase.

If a lender tells you there aren't fees they are prob. making it up in a higher int. rate. You have to have an appraisal, credit report & title work, recording fees & depending on the title co & what type of policy you need a survey. Fees that mortg. cos. charge should include everyone else fees. If you have a lender that has an interest in a title co. they may get part of those fees charged too my company has a great relationship with a title co and we use them because they give good svc not because they pay us per file.. hmm RESPA?? We negotiated reduced fees for our clients because not so we can put extra money in our pocket. But there are fees & depending on the requirements of your state the fees are diff.

WOW! As a mortgage professional I have to say I agree with a lot of what is said in this article. But the writer fails to mention that in some states mortg. people are not licensed and they will tell a borrower what ever they want to here. Choosing a lender based on fees is just stupid! If you need a lawyer do you choose one based on fees, how about a doctor??? Stupid you say, choosing a lender based on fees is just as stupid. Why do you think there are so many people in mortg. programs they shouldn't be in. Not all fees are set by the lender, the lender doesn't prepare the HUD - the title co does. the seller or sellers agent picks the title co. How about title fees, how about the real estate compliance fee, recording fees and and wait my fav. misc title fees. As a responsible lender I list all of these fees on my good faith estimate and most of them effect the apr so when i disclose and another lender doesn't who is wrong? DO NOT SHOP FOR A LENDER BASED ON CLOSING COSTS!

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Buying a Home? Cut Those Closing Costs! Smartmoney article: http://digbig.com/5bamjm