How do I shop mortgage companies for the lowest closing costs?

The fact is that closing costs are whatever you want them to be. If you want $3,000 in total closing costs then tell all companies that you want a rate quote with only $3,000 in costs. Count taxes, insurance and daily interest separate from closing costs. Tell the mortgage companies that you will ask them to sign an affidavit holding them to the closing costs quoted. You will now be able to see who has the best rate with the costs you choose. Rates should only be shopped on the same day within a 2 hour window because the mortgage market sees rate changes in real time similar to the stock market. If you receive a rate quote on Monday from company A and a quote on Wednesday from company B be sure to call back company A to get a rate update. In a falling rate environment the good quote on Monday may seem like a bad quote on Wednesday. In a rising rate environment the Wednesday quote will look worse than Monday and you’ll kick yourself for getting greedy and not locking the loan sooner. For more information contact TexasLending.com or send me your email question to info@texaslending.com.