Tips for Understanding a Mortgage Settlement Statement

How do I know what to look for on a document that has so many numbers?  When looking at the settlement statement, there are only a few areas in which the numbers will vary.  Focus on lender fees!  These are usually on the first page in the section that shows points, processing and underwriting fees.  It is there where you can compare lender to lender to determine if you are getting the best deal.  

Title fees can vary by a few-hundred dollars.  Lender fees, however, can vary by thousands of dollars!  Mortgage brokers must disclose all of their fees on the settlement statement including back-end yield.  Mortgage banks are NOT required to disclose back-end yield on the settlement statement, but must disclose points or other fees on the front-end.  Processing and underwriting fees will vary lender-to-lender and sometimes state-to-state, but those are the fees to focus on. 

Be in the know... informed decisions = better futures. 

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