Home Buying in 85048>Question Details

Cycle87, Renter in 85048

Need help on closing cost of homepath house. it looks too much.

Asked by Cycle87, 85048 Sun Mar 17, 2013

I'm buying a homepath home with 10% down(275K purchase price), my credit score is ~720. the lender is asking about total closing cost ~$13,000 with origination fee of ~$5,000, no discount points. I think this is too much, but I don't know what is wrong with this fees. My broker says it is normal. any ideas? Thanks!!

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Korene L. Clopine-Seaman’s answer
THE GFE was due to you within 3 business day when the disclosures were sent out. NOW If the interest rate was floating... You may have other issues. By changing to an new lender you have to ask yourself what is the interest rate NOW, what are the costs, etc. We have ALL the same guidelines.
0 votes Thank Flag Link Wed Mar 20, 2013
Here's the email I got from the broker.

Email below from my mortgage broker, she just sent this email 7 days before the closing!!!
And she may ask seller to cancel the contract!!


Attached is the gfe and broker fee agreement. Please review.
We reduced our processing fee from $495 to $395 to help.

Please sign it so we can move your file to next step. Lender need it 10 days prior to closing.
Let me know if you still have any questions on loan origination fees or need schedule an appointment to discuss it.

Seller need to know the estimated closing date by tomorrow. I need send out the extension request with new closing date or send out the cancellation notice.
0 votes Thank Flag Link Wed Mar 20, 2013
Thanks for all the advice!
Here's my situation now, I met the broker yeserday and she agreed to lower the origination fee right on the spot from 2% to 1.25% of the loan amount. So now I have following itemized amount(see far below)
However, I'm still feeling I'm paying too much, and my broker emailed me this evening the final "GFE" and the "broker fee agreement" asking me to sign on it by tomorrow before the 7days before the closing!, the original closing is 3/26, and she is going to put it off a couple of days. I want to change to new lender, but I'm concerned that seller(fannie mae) may cancel the contract. The broker did not give me enough time, and gave this GFE at the last minute!!!
I need your advice how I can talk to seller and work with new lender. My mortgage broker is not working for me, my realtor is saying there is a risk to lose the house if we switch to new lender at the last minute like this.

Loan amount : $237,000 (purchase price: $275,000, and seller credit at closing: $8,250)
Interest: 3.750% for 30 years(home path house), monthly pay: $1097

Here's breakdown.
1. Origination charges $3,961.86 ($775 underwriting fee included)
2. Services fees $170 (credit report: 80, flood cert. :5, Tax service :85)
3. Title services and lender's title insurance: $2,000
4. Owner's title insurance: $1,314
5. Home warranty: $650
6. Gov'ment fee: 50
7.tax and insurance (escrow): 450
8. interest charges: 74
9. Home insurance: 585

Total settlement charges: $9,255
0 votes Thank Flag Link Wed Mar 20, 2013
I know many people have responded to your question. I think the question we all need to know is how long do you plan on keeping this property. It sounds like your current lender is buying down your interest rate. When I speak to my clients for the first time I always find out what is most important to them. Some clients want to have the lender give them a lender credit for some if not all of their closing cost and others want to pay points to buy down their rate. If you are still interested in speaking with another lender feel free to give me a call.

Tim Wikoff
623-308-5623
http://1stazmortgage.com
0 votes Thank Flag Link Tue Mar 19, 2013
Ask your lender for a COMPARISON with a Homepath loan, an FHA loan, and a conventional loan with one pay MI. If your current lender cannot or will not help you, feel free to call me. Our origination fee is less than $1500.00 unless you are buying the rate down. You can e-mail me the GFE. As a Senior Mortgage Banker, I would be happy to look it over and give you my honest opinion. As a NMLS licensed mortgage banker, we direct lend in both Arizona and California. If you or someone you know is looking for financing options, please feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman NMLS # 218520 KLCSLoanTeam.com We are Direct Lenders. WE CLOSE LOANS for YOU with reasonable and fully disclosed costs and fees! You may hear more information on YOUR Source For Real Estate on Money Talk Radio 1510 AM each Saturday from 12:00 Noon until 1:00 PM
0 votes Thank Flag Link Tue Mar 19, 2013
Hi Cycle:

5+% of the purchase price is high for closing costs. Without getting an itemization of the $13,000 hard to determine where this is coming from in this open forum. Fannie Mae often pays some or all of the buyer's closing costs. Will they pay some of your costs.

Review again with your lender, broker and escrow company and get the details. Maybe there is a mis-understanding.
0 votes Thank Flag Link Mon Mar 18, 2013
I have sold numerous Fannie Mae homes over the years and don't recall one buyer ever actually using HomePath financing. My lenders have always found them a better product that was best for the buyers.

Find someone that is looking out for you!
0 votes Thank Flag Link Mon Mar 18, 2013
With so much competition, I am pretty sure you will find a Mortgage Broker or Loan Officer that will not charge you points upfront. Have you tried going to a major Lending Institution (Chase, Wells Fargo, Bank of America) instead of a Mortgage Brokerage Business?
0 votes Thank Flag Link Mon Mar 18, 2013
We're a Mortgage Brokerage Business in Miami, Fl and we do loans without upfront points. Wtih the new Qualified Mortgage guidelines mortgage brokerage business are limited on points they can charge. In the above loan for every .25 the difference in rate, payment increases $33.79 monthly. I've had clients from major institutions that have been pre-qualified and not qualified. It all depends on who you get. Mariela Vilaboa, Bankers Choice Mortgage, 786-600-9599.
Flag Fri Feb 28, 2014
My personal opinion is the ORIGINATION FEE is way too high! There are lenders that specifically do HOMEPATH loans which don't require mortgage insurance or an appraisal fee. If you agent is saying this is "normal", they don't know what they are doing. Find a HOMEPATH lender or talk to another lender. Many lenders don't charge origination fees anymore.
http://www.homepath.com/financing.html
0 votes Thank Flag Link Mon Mar 18, 2013
I would be glad to provide you with a couple of reputable local lenders if you would like to do a comparison.
0 votes Thank Flag Link Mon Mar 18, 2013
I think that you should contact a couple other lenders for quotes!
0 votes Thank Flag Link Sun Mar 17, 2013
I'm happy to review your good faith estimate for you.....origination is usually only 1% of the loan amount...in your case $2475. Closing costs are also generally 2.5-3% of the sales price...in your case they should only be about $8250. I can give you my professional opinion if you'd like to email or fax your good faith estimate over.

Leo Zuniga
leo@vipmtginc.com
P - 602-332-0420
F - 623-565-8018
Web Reference: http://www.loansbyleo.com
0 votes Thank Flag Link Sun Mar 17, 2013
Thanks for the reply. So my next question is who is getting the origination fee then? Lender or broker?
Flag Sun Mar 17, 2013
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