It is very important to get a couple different good faiths! For instance I do not charge a processing fee and my underwriting fee is $525.00. When making comparisions you should get a good faith that is from the same day, same rate, same loan amount, and program. This way you will be able to tell what lender is the best priced option.
Please let me know if you need a good faith provided

Who is charging them?

If it is the lender....maybe
If it is the title company...not really
If it is the Realtor...YES

If you could answer that, I can better answer your question.


Gary De Pury
Broker-Owner
Bay Vista Realty

Processing fee seems a little high but it is possible they might have other fees lumped into it so that you don't feel nickel and dimed underwriting seems fair this usually differs by lender... six on one half a dozen on the other :)

Most importantly compare the APR on the same loan product.

Caps on Dollar Amounts and Percentages in your Real Estate Contract:


Look closely at the Real Estate Contract between you and the Seller.

There will be a section titled "Buyer Costs" or "Buyer Expenses" or "Closing Costs" or similar.

The Breakdown will include such things as Title Insurance, Survey, Appraisal, Inspections,
and Loan Costs.

Look especially for things like "Discount Points", "Origination Fee", and "Any Loan Cost required by Lender".


*** Do you have Caps (Maximum Dollar Amounts) on these items? ***

For example,
Does your Contract say, "Total Loan Costs not to Exceed ___ Dollars",
or "Discount Points not to Exceed _____ Dollars " in the appropriate places?

Are the other costs and items capped?
--------------------

The Lender sees the Contract.
If you (or the agent or attorney that drafted the Contract) left these items uncapped,
there may be Lenders who will take the opportunity to charge you high amounts and high fees,
knowing that you are contractually bound to go through with the transaction.


When signing a Contract, make certain that you put [realistic] caps on the expense amounts.
----------------

Best wishes,
Fred
-----------

Good Question.
All the answers noted were correct. Mortage brokers/banks etc. have different fees connected to thier cost of processing any loan. By all means, a good faith estimate by at least 2 reputable lenders/brokers is the best way to go.
They are very competitive, and some have more options to negociate them down and get your business.
Most importantly, get some good referrals from a reputable source before picking them out of the phone book. We as professionals have been thru this process with our buyers over the years, and found the team that seems to be ethical, moral and overall good brokers to deal with.
Just a few questions to ask them, and by all means, let them know you are shopping for the best loan for you.
They will vary, but be advised, don't let them shop your loan to much, for it may lower your credit score.

Do you have someone your working with? You seem to be going down the right path and putting the horse before the cart.
I can refer a couple contacts if you want to call them and tell them what you are looking for and let them see if they have the right package just for you. Some banks are more liberal and have more programs, and some are very conservative and only have a couple of loan programs available making it more difficult to work the loan to fit your needs.
Good luck to you,
You can check out my website where you can find some great info to help you there. I have some very helpful info there you can put to use.
pattysproperties.com
Patricia Bergren
Coldwell Banker United Brokers
360-798-6733

Most lenders have some version of fees like this, but the real issue is the total fees that you pay to get the loan you want. Did your lender give you a Good Faith Estimate? They are required to do that when you apply for
a loan. The best way to compare one loan cost to another is to have Good Faith Estimates from both lenders.
Only then will you be able to tell which is the best buy. Another thing to consider is your real estate agent's opinion of different lenders. Some of them are so excellent that you can rely on the Good Faith Estimate and they are rarely off by more than a couple hundred dollars at closing. It doesn't do you any good to pick the best estimate if that lender changes fees just prior to closing when it's too late for you to easily switch lenders.
Another thing to consider is how many of the loans the lender preapproves actually close. Many times the lenders that seem to offer the best "deal" on fees and interest rates have other issues that will make you lose the house at the last minute.
Right now is a very important time to have an excellent lender working for you, even if their costs are a little
higher. Appraisals are coming in low, and a good lender will look at other comps your agent provides that may help get the appraisal up where it needs to be to close the sale. A good lender also will have a good list of appraisers to choose from, so that whoever turns up in the new rotating pool of appraisers will be one who is experienced and competent.

I always encourage any buyer to check out 2 or three lenders.... Processing and underwriting fees do vary, but then so do interest rates. Sometimes you may pay more in processing and underwriting fees and get a lower (slightly) lower interest rate... Some lenders claim "no fee loan", but their interest rates are higher.

If you are well qualified, they will compete for your business to the limits of their guidelines. Some Lenders can provide you quotes from multiple wholesale lending sources, but ALWAYS get competitive quotes.

Every lender, when he quotes your rates and fees in the prequalifying process must provide you a GFI or Good Faith Estimate, Its the Law. So do your homework, get a couple bids, but remember a few extra dollars up front can be better than a higher interest rate over the next 10 years.

Jajlies,

I advise any client to review the entire cost and rate structure of any loan before negotiating any single aspect. So, "yes," some would consider the fees above as "junk" fees, but really they all play into your lender's profit on the loan. If you're getting a great rate and you're paying $1115 to make it happen, versus someone who is paying $400 in "junk" fees but being offered a much higher rate, well, these are the kinds of things you need to weigh.

If you are communicating with your lender and understand how rates and costs go together, you will likely get a very good deal and be able to compare offers with confidence. If you are not able to talk the same language with your loan officer and you remain confused, you should find a new loan officer.

Best of luck and please let me know if I can help.


Rob Spinosa
rspinosa@mortgagemasterinc.com

I just closed on a loan and it had a $650 processing fee. It was a FHA loan.