What closing costs are important to look for when shopping for a new mortgage?

Myth # 16: Closing costs are closing cost.

The closing cost can be color-coded by potential borrower saving, Red being the most and Green the least savings possible. We have marked a Loan Estimate for your reference at the end of this article.

  1. Box A (See below). (Potential savings: 1k to 100k). This is the most important box that matters to you and it includes origination, Application, underwriting and processing all of which are often manipulated by lenders in order to maximize profit. This is the highest $$ ticket, therefore, the most important.closing-cost-box-a-origination-charges
  2. Box H and C (See below) are mainly your title fees. (Potential savings: $200 to $500). Box H Owners title policy is optional and frankly completely useless and most people do not get it. Can you shop Box C? YES, but do you want to? Not really, there are only a handful of big title companies in the US and good luck calling one and trying to shop for title insurance as a borrower. They rarely deal with borrowers directly on fees and will likely ignore youclosing-cost-box-h-other-c-shopable-services
  3. Box B, E, F, G (See below) (Potential savings: NOTHING). Collecting escrow is never straightforward from lender to lender. You could have one collect 3 months of escrow and another 6 months, making your prepaid completely different. You don’t have control over this, so there is no need to waste your time on this. If you want to spend several hours trying to save $5 dollars here is your chance.closing-cost-box-b-non-shopable-services-box-e-f-g-other-costs

Color-coded Reference Loan estimate


To learn more about Parlend’s unique mortgage calculator that calculates your fair mortgage rate and the closing cost that corresponds to it click here. (NOT All Mortgage Calculators are created equal)


Myth # 17: Direct lenders can get me the best deal

Check out our free mortgage shopping tools at https://www.parlend.com

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