Processing for pre-approval?
Processing the loan for approval?
There are unnecessary fees charged up front by some lenders.... not the good ones though. Some lenders like the texas lending people charge an up front 'commitment fee' to do your loan. LOL..... I don't know how they get away with it.
I don't see many charge to pre-approve your loan though.
Regardless..... the up front fees are not necessary and there are MANY lenders who do not charge them. It just isn't professional and there is no advantage to you to work with a lender who charges this junk fee.
Now, if you are pre-approved and proceeding with the loan.... Do expect to pay for your appraisal up front..... No lender wants to risk you backing out of the deal without that being paid.
I suggest finding another lender. If you shop around, please make sure to compare apples to apples. I have seen clients "compare" and think they are getting a better deal when they were not because they were not comparing everything. Best of luck.
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
If they are asking for this in addition to the appraisal fee, then it is NOT NORMAL.
Are you under contract? Or just getting a pre-approval?
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
I would get a GFE from another lender or broker. If you are dealing with a retail bank a broker like myself can get you the same interest rate they are charging you and also give you about a $3000 credit towards your closing costs. This is based on a $200,000 loan amount but it shows you how much you can save using a broker. Brokers can charge more or the same as retail companies so you do want to compare some options. Once you know your credit scores you can get GFE's from other lenders without them needing to pull your credit.
If you like call or send me an email and I will send you a GFE. I am a tier one broker all the major lenders like Wells Fargo and my rates and fees will save you thousands over the retail banks.
Best of luck to you.
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
But if you are at the preapproval process wherein you want to have a preapproval letter to go with an offer you are making, then no....it's not typical to pay $450 to be preapproved .
I disagree, that is not normal. I assume you may be using a large bank as some of them require up front fees regardless if they approve you or not. In my business we never charge an upfront fee. Borrowers do have to pay for the appraisal but that is not done before the loan process starts. I would ask them what that fee is for before you pay it. Hope this helps.