Why are you being charged that fee to begin with? I personally would never pay that fee.
In fact, the realtors partners I refer my pre approved buyers to in your area will actually pay for my buyer's closing costs!
Click on this US Dept of Justice website: http://www.justice.gov/atr/public/real_estate/commission_table.htm
Google search: Florida Realtor Rebates
YouTube search: Florida Realtor Rebates
Email me a copy of that GFE at: Stve@pro-option,com and I'll send you a realtor GFB (Good Faith Bid) so you can shop around for your best overall deal.
My realtor partners offer a buyer's agent credit on a $250,000 purchase price of up to $4,000 can be used for rate reduction to help qualified buyers obtian rates in the 2.00% range.
Pro Option Mortgage
Ph: 888 662 4404
Now that you have clarified that you are just getting a loan pre-approval, your mortgage advisor can't provide you with an accurate GFE until you can provide him/her the following per the new rules (Note: this is by no means the complete explanation of all the new rules that apply to GFE's):
Lenders must provide a GFE within 3 days of customers making application for a loan and these elements are necessary for a mortgage application and require the lender to issue a GFE: 1) brorowers name; 2) loan amount; 3) monthly income; 4) credit score; 5) propeerty address; 6) estimated property value; 7) social security number. The lender is bound, within certain tolerances, to the fee amounts that appear on the GFE for 10 business days after issuing the GFE or when the borrowers agree to proceed with the loan application, which ever comes first.. During the shopping phase, changed circumstances (i.e. loan amount, subject property address, etc.) may occur that permit the lender to issue a revised GFE. Lenders can restate or reissue a new, binding GFE only if changed circumstances are associated with the application. If changed circumstances are associated with the application and there is an increase to the fees related to the change, the lender must reissue the GFE within 3 days if the lender wants to rely on the new estimate.
Since it appears that you may be in the beginning stages of your home purchase process, unless your Realtor has told the mortgage advisor that a "realtor fee" will be charged, then I really don't know why a mortgage advisor would indicate such a fee on a preliminary GFE. Normally this would be referred to as a "transaction fee" . If you are being charged a "transaction fee" by your Realtor or Realtor's Broker, they must advise you upfront what services are provided for this fee which is above and beyond their earned commission. While I personally feel that transaction fees are not warranted, I continue to see where some Realtors are charging them and what I really object to is when a listing agent/broker requires the buyer's agent or the buyer to pay such a fee.
This is probably more information than you were looking for, so I will come to a conclusion hereby saying again, you should speak with your mortgage advisor and Realtor about your concern, after all, they stand to lose a good customer if you are not provided with a satisfactory explanation.
Thank you for looking to Trulia.com for answers to your questions.
Suzanne Ogden, Realtor
Charles Rutenberg Realty
The fee you are talking about is probably a processing or Administrative fee.
You should check with your loan officer to see why it was put on the GFE. Also
check with the Realtor involved and ask if they have this fee with their contract.
Good luck on your purchase.
John Forrester PA
Although some RE companies have been doing this all along we are seeing more today due to the downturn in sales, got to keep that national advertising going or that out of date storefront open.
Real Estate is changing daily through the internet with websites like Trulia leading the way by connecting buyers and sellers with agents. This connection is giving the independent 'mom and pop' real estate companies a chance to compete once again and without fee's.
Hope this helps,
http://www.AimLoan.com (only if you're not getting an FHA with 3.5% down)
Some Real Estate firm (even large nationwide ones) extract "extra" fees from buyers. The commission they receive should be sufficient but because of pure greed these corporations will attempt to collect another $250 to $300 from an unsuspecting buyer or seller. You probably already signed a form authorizing them to overcharge you this fee.
Contact your Realtor immediately and tell her you want to dispute this possibly illegitimate charge. We have new rules that prohibit arbitrary "garbage" fees to buyer and sellers and hopefully if you question the fee, they will remove it!
You really should be questioning your Realtor or mortgage advisor about this fee. If it is a transaction fee charged by your Realtor or the listing Realtor, this must be disclosed to you at the time you made the offer. Otherwise, it could just be your mortgage advisors policy to do this in view of the new legislative changes that recently came into effect for the mortgage industry. Basically, with the new regulations, if your final closing statement shows a higher amount than the GFE, the mortgage broker may have to absorb the difference.
Thank you for looking to Trulia.com for answers to your question.
Suzanne Ogden, Realtor
Charles Rutenberg Realty
Stirling Sotheby's International Realty