Home Buying in Dallas>Question Details

Tracy, Home Seller in Dousman, WI

Appraisal Fee in advance??

Asked by Tracy, Dousman, WI Tue Jan 28, 2014

We are relocating to TX and I have a broker that came recommended by the broker we used to refi our current home in WI, who was very good.

She is asking for a $525.00 Appraisal fee, this is her statement in the e-mail,**The only out of pocket cost you will pay at time of application is the appraisal fee of $525**. Once we are moving forward you can fill out the credit card authorization form. This form will be in your loan application documents.** My question, is this standard in Texas? It is not here in WI. We have not even begun to look at homes in Texas, except on Trulia and Zillow just to see what is out there. Any help would be appreciated. Thank you

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14
Welcome to Texas! I'm not sure I'm understanding your question. Whom is asking for an appraisal fee? Since you haven't found a home in Texas yet it seems unusual to ask for an appraisal fee already.
1 vote Thank Flag Link Tue Jan 28, 2014
Seems premature since you have no house to go appraise yet. I would tell her to slow down. I would suggest talking to more than a couple lenders to see what they offer. $575 for an appraisal sounds high to me, but then everything in TX is bigger I guess.
1 vote Thank Flag Link Tue Jan 28, 2014
Tracy,

The rules are truly established by each financial institution. The buyer is responsible for the cost of the appraisal, which is determined by the Financial institution.

I work with 2 amazing financial partners who have access to a variety of loan programs. You could benefit from a second professional opinion. If you are interested in any further information, please let me know. I will be happy to provide you their contact information. Thank you!
0 votes Thank Flag Link Wed Jan 29, 2014
The MDIA Act of 2008 regulates the collections of mortgage fees. Did this broker disclose a Good Faith Estimate and APR? See the following link: http://www.dfi.wa.gov/cs/pdf/mdia-notice.pdf

Without those disclosures, you don't need to send anything more than a credit report fee. Since you haven't found a house yet, there wouldn't likely be a GFE.

You might mention that to the broker.

Good luck, and once again, Welcome to Texas!

Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas
0 votes Thank Flag Link Wed Jan 29, 2014
The state doesn’t matter, RESPA is a federal law. She can’t charge for an appraisal until she has furnished a formal GFE. So if you are talking about the prequalification process then she is not allowed to do that. The issue might be the definition of what is meant by “at time of application” it is not a full application until you have a property address. “Once we are moving forward” would indicate to me you would have a contract on a property and want to complete the loan application. It sounds to me like she is preparing you in advance that she will need money before ordering an appraisal, that is good, full disclosure in advance. I like that, and that is how I do it as well. I like my clients to know in advance what to expect.

But why second guess her intentions? A simple phone call to her and ask about the process will probably match my guess.

Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Wed Jan 29, 2014
That sounds high, actually. It is pretty standard to pay for the appraisal up front, and have it noted in the closing docs. But that is the highest I have seen. The last one I paid for was $425 a month ago. It could be dependent upon the situation or area, I guess.

What part of Texas are you looking at? I am in the Dallas area. Did you see the home I have listed? We are updating it now. It will be gorgeous! And in the prime Lakewood Elementary area, if that is important to you.

Hope this helps. Good luck in your search and relocation.

Linda
J&L REI LLC
0 votes Thank Flag Link Wed Jan 29, 2014
Appraisal fee is usually paid after you have an executed contract, meaning you've found a home and not before! I would suggest that you talk to a different mortgage broker/banker. Let me know if you need a name or two, I have some good and reliable ones.

Susie Kay, Realtor®
GRI, CHMS, SFR
Residential/Commercial/Investment
English-Indonesian-Hokkien
------------------------------------------------------------------
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
469-371-2899
susie_k@att.net

http://www.dfwdreamhomes.net

Servicing your real estate need is my priority!
0 votes Thank Flag Link Tue Jan 28, 2014
Appraisal fee is usually paid after you have an executed contract, meaning you've found a home and not before! I would suggest that you talk to a different mortgage broker/banker. Let me know if you need a name or two, I have some good and reliable ones.

Susie Kay, Realtor®
GRI, CHMS, SFR
Residential/Commercial/Investment
English-Indonesian-Hokkien
------------------------------------------------------------------
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
469-371-2899
susie_k@att.net

http://www.dfwdreamhomes.net

Servicing your real estate need is my priority!
0 votes Thank Flag Link Tue Jan 28, 2014
Hi Tracy, I'm a real estate and morthage broker. We never charge an appraisal fee upfront. As a matter of fact, if a client is using our services to purchase a home, we pay the appraisal fee and never charge our client! U can call me ar 214.566.2646 or email me at Amin@dfwrealtyMortgage.com.
Good Luck
0 votes Thank Flag Link Tue Jan 28, 2014
No, that is not standard in Texas. I would not pay for an appraisal until after you have a property under contract. And $525 is high for a residential property.
0 votes Thank Flag Link Tue Jan 28, 2014
This more or less locks you in to that lender....and keeps you from shopping.
Most of the lenders I normally use would ask for this fee when you are either ready to do the appraisal and have contracted on the house or when you are ready to lock the rate.

I think this is probably the same anywhere, but I don't know that....as I am only familiar with the DFW area. There are some that may ask for that, but I do not think it is common at the time of application.

If you are committed to using that lender, I think I would ask them if you can make application and get preapproved without that fee? What's the latest you can pay the appraisal fee? and see what they say.

If you need other great lender recommendations please let me know.

You can see homes in Savannah here:
http://www.metroplexhomesalesinfo.com/listings/areas/159103/…

You can see homes in Providence at this link:
http://www.metroplexhomesalesinfo.com/listings/propertytype/…
0 votes Thank Flag Link Tue Jan 28, 2014
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Absolutely that is very high! And since you haven't found a house yet, you don't need that appraisal until after you have an executed contract, and your option period is over. I work with reputable lenders that are amazing and won't steer you wrong. Another red flag is the credit card up front. I would be happy to not only help you find a home, but refer you to some good lenders. Please feel free to call me. I can explain the process that we do here in Big Texas!

Liz Renfro
William Davis Realty
214-924-9676
Lrenfro@sbcglobal.net
0 votes Thank Flag Link Tue Jan 28, 2014
NOTE: Trulia currently has a tech issues post a segmented comments into ongoing running statements.

Every professional has their own standard business practice.

However till I was qualified for a loan I wont not see any reason have my credit card on file.

I work with an excellent mortgage broker, and happy to refer you.

I feel honored to represent you with any real estate services for search of a home .

My website is updated daily therefore saves you time search accurate information

Allow my professional profile to introduce myself to you
http://www.lynn911.com/Web/AR287090/About/index/5002763

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0 votes Thank Flag Link Tue Jan 28, 2014
Perhaps she means you will pay that when you make the actual application. She's just giving you a comprehensive list of the items you'll need along the way. Without an APR disclosure, we can't take any more funds than a credit report fee.

Good luck, and welcome to Texas!
Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans ALL Over Texas
0 votes Thank Flag Link Tue Jan 28, 2014
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