Home Buying in Sacramento>Question Details

Trulia Sacra…, Home Buyer in Sacramento, CA

Do lender's fees vary?

Asked by Trulia Sacramento, Sacramento, CA Fri May 24, 2013

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All service providers have to compete for business. This puts some pressure against being a lot higher in price than competing providers.
When it comes to getting a loan, the borrower compares estimates to estimates. It would be nice if there was some way to know which loan companies give accurate estimates at the outset, and which ones "low-ball" their estimates to get the application, then end up charging more at the end of the process after the buyer has reached the point of no return.
0 votes Thank Flag Link Sat Jun 1, 2013
Jim Walker, Real Estate Pro in Carmichael, CA
Yes. Just as no one credit profile is the same no one GFE will be the same. Yes there are STANDARD LENDER FEES that a lender may charge to all of their borrowers but origination fee and rate are always negotiable. Also these STANDARD LENDER FEES are different from lender to lender. So YES lender fees vary.
0 votes Thank Flag Link Wed May 29, 2013
Yes they do so it's important to get a good faith estimate from several different lenders. Put them side-by-side and compare their fees that way. It's the only way it will make sense to you. Then go back to the same lenders with the questions about specific fees. They will then be able to give you an explanation which will help you understand who the right lender is for you.

Best of luck,
0 votes Thank Flag Link Mon May 27, 2013
The definition of APR is annual percentage rate, which includes the cost of the loan, and not just the interest rate. Originally that was how you could compare rates between lenders and still is.

Lenders rates vary, but if I were the consumer, I would select a lender based on reputation- giving affordable lender fees, the best interest rate on the market, and ability to CLOSE ON TIME. That's nothing to say that they provide an accurate loan that is what they promised and doesn't have terms that I didn't know were there.

Federal law has restricted what they can charge now for fees so there isn't the misrepresentation and gauging that might have gone on before, but they can still charge a little different than another lender.
0 votes Thank Flag Link Mon May 27, 2013
Yes .
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Fri May 24, 2013
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