Mortgage Fees

There’s a lot of documents you need for verification but most of it can be found online and like banking statements, pay stubs etc

Not sure about the good faith money

They are requiring good faith money for a preapproval? Hell no that's normal.

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They've done some preliminary stuff and have sent us a small forest's worth of paper to sign for the official preapproval.

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I can see some lenders requiring you to put up some money when it gets far enough along in the purchase process to things like appraisals, having title work done, etc...things that the lender could actually lose money on if you back out or switch lenders. They don't do any of that shite for a pre-approval letter...you shouldn't be out of pocket to a lender for a pre-approval.

No offense, but banks and CU’s are horrible choices to go directly to for mortgages. I say this having never done any personal banking with anything other than CU’s.

Go find a broker. Several. Interview them all.

What you got from the bank was the Loan Estimate. It replaced the Good Faith Estimate (GFE) thanks to Dodd/Frank which was passed during the Obama admin but is essentially the same thing as the GFE. Since you went with a bank that I’m assuming has locations and does business throughout the US, they sent you cookie cutter Loan Estimate paperwork, along with the disclosures that are a part of it.

Do not let ANYONE make you pay for a GD prepapproval, though. That’s BS. Earnest Money in Louisiana in my experience isn’t ever something someone begrudges you over or keeps. Not saying it hasn’t happened, but typically it’s a dumb person on one side of the transaction, and an a-hole involved as well. Sometimes both on one, or both sides LOL.

The Loan Estimate (LE) is a legal requirement for them to send you and don’t get uptight when I tell you this, but the closing package will be 2-3 times bigger.

Again, don’t go with a bank. They are cookie cutter and lack the same array of lenders a mortgage broker can access. Whether price, downpayment, income, rate or guidelines is where you need flexibility, a broker gives you more of it all.

Don’t go with a realtor’s profit or referral partner either. Find someone YOU are comfortable with. Preferably someone with a track record and easily found and verified referrals from real people. Don’t be afraid to tell friends and family recommendations to get bent. Friendship ain’t worth getting ripped off for 3 decades or thousands of dollars.

Try to go with the person you feel is as up front with you as they can be. Someone who offers to teach you or educate you about what you don’t know or aren’t familiar with.

Good luck.