07/24/2026
🚨 A lower rate doesn’t always mean a better deal. 🚨
A borrower recently sent me another lender’s Loan Estimate to compare, and the fees told a different story.
Here’s what stood out:
Broker Fee: $7,500
3rd Party Processing Fee: $2,000
These weren’t appraisal fees, title fees, or government charges — they were lender-controlled fees that can vary from one lender to another.
For comparison, our origination fee is a flat $1,050. (Down Payment Assistance loans are 1% of loan amount)
The borrower shared my Loan Estimate with the other lender, and those lender-controlled fees were reduced.
That’s the important question: How can a lender adjust those fees?
Because they are lender-controlled fees — not third-party costs or required fees. Lenders have the ability to structure their own fees, which is why it’s so important to look beyond just the interest rate.
Two lenders can offer similar rates while one loan costs thousands more in lender fees.
Before choosing a lender, compare:
- Interest Rate
- APR
- Discount Points
- Lender Fees
- Total Cash to Close
As a local lender, we believe in transparency from preapproval to closing. Don’t just compare the rate — compare the entire loan.
A second opinion could save you thousands!
