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.
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
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
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.
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