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Kenya Bolden, Home Buyer in New Cassel, Westbury,...

Do brokers or mortgage bankers normally charge an application fee.?

Asked by Kenya Bolden, New Cassel, Westbury, NY Tue Jul 27, 2010

Application Fee

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Ive worked at variouse brokers and lenders over the last 10 years and all of them had some form of an application fee. from one man broker shops to national lenders and commercial banks. some took the money up front as a way to offset costs incurred to process your loan and cover those costs until your loan closed, others charge and take the money at the closing. but all had one. Anyone below who says otherwise is mistaken. It is usually best to find a lender that does not take the money of front because it does give the lender/loan officer leverage over you through out the process. if customer service drops after they get the money you will not easily divert to another lender out of fear of losing the money you gave. this money is usually not refundable. If you need any assistance in being pre approved or with your loan feel free to email me your contact info and I will gladly assist you.
0 votes Thank Flag Link Mon Apr 11, 2011
Some of the larger companies may try (like Quicken) but for the most part the MDIA did away with this practice. Under the Mortgage Disclosure Improvement Act (MDIA) no fee may be collected from the borrower (except for a credit report) until after the disclosures have been received, which is normally not until 3 days after the Early Disclosures have been sent.

There are a couple of exceptions to this listed below.

If a lender uses an electronic avenue to send disclosures (email or some type of web site) , the borrowers can pay other fees as soon as they have completed electronically signing the disclosures.
If the borrower signs the disclosures in the lenders presence, the lender can immediately collect other fees.
0 votes Thank Flag Link Fri Jul 30, 2010
Typically, no. I tell my clients here in Arizona, it is free to get pre-approved. A lot of the time they can do it over the phone and then make an appointment to come in with your W-2's and paperwork. It shouldn't cost you anything and it is good to know. Just cause you are pre-approved for $X does not mean you have buy that much house. Get the numbers, if your credit score is not high enough, they can council you on what you need and etc to improve so that you can buy a house. Good luck.
0 votes Thank Flag Link Thu Jul 29, 2010
Remember, they do not make a penny, until the deal closes, and since there is so much work to do, they would charge you a fee to start the work, get you approved, and then, in most cases, will credit that amount at closing. Otherwise, most people would contact 10 brokers just to compare and then decide for only one, and the other 9 would have worked for free.
Please feel free to contact me at 786-290 5445 or e-mail me: info@kamalsalim.com
Web Reference: http://www.kamalsalim.com
0 votes Thank Flag Link Thu Jul 29, 2010
Hi Kenya, many brokers and bankers charge an application fee but refund (or credit) that fee at closing. It is one way of keeping you as a customer-alot of work goes into these applications- they certainly do not want to it for nothing. So when shopping around-ask about the credit and the rest of their fees??. Terry K 718614-3167 cell or email me therese.korahais@elliman.com
0 votes Thank Flag Link Thu Jul 29, 2010
Not uncommon to charge an application fee--therefore do shop around as fees may vary.
0 votes Thank Flag Link Wed Jul 28, 2010
It's not uncommon for mortgage brokers to charge an application fee. You can ask around to different lenders and see what they charge. If you are working with a real estate agent, ask him/her if they have anyone they recommend. Sometimes the lender will wave the fee if the buyer is a referral from an agent.
0 votes Thank Flag Link Tue Jul 27, 2010
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