Your closing costs are higher than theirs: mortgage
The short answer
Compare both loan estimates line by line before you defend anything. Closing costs include fees the lender sets and fees set by others, such as title services and prepaid items, and the two estimates may not count the same things. Find the real difference, name it, and let the buyer decide with the paper in hand.
Take this call against an AI buyerWhy buyers say it
The loan estimate puts closing costs in one box, and the buyer reads the box. They do not know which lines belong to the lender and which belong to third parties. A higher number looks like a higher price, so they ask why.
How reps lose the deal on it
- They say "those are standard fees" and move on. The buyer hears a brush off about their own money.
- They waive a fee to close. Now the buyer thinks the fee was padding.
- They compare totals without checking what each estimate includes. A box that looks higher may hold items the other leaves out.
Stronger lines to say
- “Let’s look at both estimates together, line by line. Some fees are ours and some aren’t, and the two sheets may not include the same items.”
- “Here’s the line that differs, and here’s what it pays for. If it’s a fee we control, I’ll tell you if it can move.”
- “I won’t ask you to pick on one number. Let me show you the total cost over the time you plan to keep the loan.”
Questions reps ask about it
Which fees can a loan officer change?
That depends on the lender and the loan. Know your company's policy before the call. Say which lines are the lender's and which are set by others, and never promise a change you cannot make.
Why do two loan estimates show different closing costs for the same loan?
The sheets may count different things. One may assume more months of taxes and insurance in escrow, estimate third party fees differently, or include a lender credit the other does not. Read the sections in the same order and mark which lines are the lender's own.
Can I offer a lender credit to close the gap?
Only if your company allows it and you explain the trade. A credit comes with a higher rate or a change elsewhere, so show the buyer both versions side by side and let them pick. Say what the credit does to the payment over the years they keep the loan.
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