What Details to Compare on Lender Loan Estimates?

[Chloe Mayer]

The first time I got a mortgage was 3 years ago buying my first home, that is and still will be my primary residence. Back then... I knew nothing, and felt like the lending process was super veiled and not really setup to help the consumer. Now as someone more informed and working on my first deal, I want to confirm what one is supposed to compare on loan estimates in order to make the best choice.

I have two loan estimates for the same loan terms: 

Loan Term: 30 years

Loan Type: Conventional

Loan Amt: $124,000

Interest Rate: 3.125%

The first loan, from LoanDepot via the broker Credible.com, costs significantly more for the points, but is cheaper on the underwriting / processing fee, appraisal fee, and apparently doesn't charge for a credit report. However, their estimate doesn't disclose items like: Flood Cert, MERS, Tax Service Fee, etc. 

The second loan, from Caliber, costs less for points, but is more expensive for underwriting / processing fees, charges an additional "Investment Home Appraisal Fee" (I learned that this is something charged by appraisers, does this really change lender to lender?), charges for credit report. It also discloses the items LoanDepot does not: Flood Cert, MERS, Tax Service Fee, etc.

I kind of assume that Flood Cert (if needed), MERS, Tax Service Fee, etc. are all required on any given loan, and the LoanDepot estimate is just failing to disclose that. 

So my question is, which pieces should I in fact be comparing 1:1 in order to determine what is the better deal? 

The Credible agent said the following: basically you want to compare the 3 items Appraisal/Credit Report Fee, Lenders Fee and Discount Points or Credits.

Is that correct? If yes, then Caliber is the better deal by... $24, so, doesn't really seem to matter. But if LoanDepot were to actually charge an additional "Investment Home Appraisal Fee," then they continue to that much more more expensive.

Thanks ya'll! 

LoanDepot Loan EstimateCaliber Loan Estimate

[Stephanie P.]

@Chloe Mayer

The appraisals are run through an appraisal management company and every lender has a different relationship with the AMC, so the cost of each appraisal can be different. Most investment property appraisals are more expensive than regular appraisals because they have to do an extra rental comparison form, so it takes more time.