My loan officer earlier gave me an estimate of $11,485 towards closing cost, now when I applied for loan I see the estimate going up to $17,110.

For example the Origination Fee Charge increased/Adujusted from $3730.66 (1%) to $4355.66.

Is this a common thing? What kind of charges I should be able to negotiate? Here are the attachments.

Closing Cost Before

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Settlement Charges During loan application

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Closing Cost During Loan application

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3 Answers 3

  • The estimate of closing before shows a full origination fee discount. The GFE document shows a smaller discount.
  • The GFE document shows greater taxes than the off the cuff estimate in the first document.
  • The GFE document shows escrow funding, which is outside the closing estimate on the first sheet.
  • Combined closing, prepaid and escrow is roughly 15.5k, which is very similar to the GFE closing which includes all of those (16.5k).
  • For an estimate made without all the facts, being within 6% ((16.5-15.5)/16.5) of the final is not horrible.

You got a credit, origination charges are $625 net. It might have to do with the current rate changing a bit.

  • Thank you @JoeTaxpayer 1. Yes, I was upfront told that the credit will be given during the estimate, but the origination fee increase by $625 next day while applying loan? 2. Origination fee is just one example, if you see the closing cost was estimated $11,485 but now it shows $17,110
    – hmajumdar
    Aug 10, 2015 at 4:36
  • 2
    Estimates are estimates, subject to change....
    – keshlam
    Sep 7, 2015 at 23:30
  • 2
    Some parts of a good faith estimate have to be honored. Other parts are more flexible, but within specific limits of the original amount. nerdwallet.com/blog/finance/mortgage/mortgage-abcs/… However, it does not look like the first document is a GFE, as far as I can tell (I am neither a lawyer nor a mortgage broker) so the lender/broker may not be bound by it.
    – stannius
    Nov 25, 2015 at 22:05

The U.S. Government's standard "Good Faith Estimate" form categorizes costs differently from how most people categorize costs. In the original poster's example, three charges in the "Closing Cost Before" spreadsheet add up to the "Good Faith Estimate" form's "Origination charge". I have rounded the charges to the nearest dollar:

$  3,731 Origination fee
$    575 Document review fee
$     50 Application fee
$  4,356 Subtotal                    = (1) Our origination charge

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