Home Buying in Brooklyn>Question Details

Ong-Art Chin…, Home Buyer in New York, NY

Will it cost me an upfront loan application fee to get a Good Faith Estimate (GFE)? Can I get a GFE without filling out an application?

Asked by Ong-Art Chinda, New York, NY Mon Aug 19, 2013

I want to shop around for mortgages and use the GFE's to estimate and closing costs, but I'm unsure whether I have to go through the full application process. I've read that the application itself can cost upwards of up to $500. Does that mean getting 2-3 GFEs is equivalent to $1K worth of application fees?

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Hi Art
if your just shopping around for mortgages to see the rates that's okay but if you really intend to
buy a property you need to pay and get a real mortgage anyways. The GFE will be an estimate , basically closing costs are approximately 6% of the sales price - when you are actually in contract,
or close to it, your initial meeting with your attorney, if we estimate it closer.

also, all closings, unless cash are generally 60 days. of course, every situation can be different,
depending on the property, and if its vacant, or the seller needs extra time, or you need extra time.

should you have any other questions please feel free to contact me. good luck
0 votes Thank Flag Link Mon Aug 19, 2013
Well it really depends where you go. For the most part, most lenders are not charging fees for GFEs. But some lenders do charge an application fee if you submit an application, which should happen once you find a property. With that being said, I will advice you what I tell many buyers, DO NOT SHOW FOR BEST FEES AND RATES. In my experience it is the wrong way to shop. These days the fees and rates that one bank or lender charges is ALMOST always close to what another one charges.

So you go to Bank of America, Citi, Chase or Wells Fargo and they'll probably give you slightly better rates and fees, BUT if you speak to Realtors and they'll be the 1st to tell you that these are some of the pickiest, slowest and unreliable lenders out there. Not that you wouldnt get a deal done, but because they operate with significantly large volume of loans in every state, they can pick and choose. Smaller companies can often provide better service because every loan matters and they depend on local business and referrals.

Not so say all smaller companies will be great, unfortunately there are some large and small companies who give us all a bad name. But I still wouldnt recomment for you to shop around for best #s, but rather shop for a reliable Loan Officer who can get the job done and educate you throughout tyhe entire process. Someone who will make this complicated process, and make it into something simple to do. Someone who actually communicates with you throughout the entire process, communicates with the Realtors, etc. Don't put yourself through a nightmare, because they charge you a couple hundred less in fees. Not worth it.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Mon Aug 19, 2013
Dear Art:

Application fees vary form bank to bank. Some banks will waive an application fee if you ask them to. Without filling out an actual application, the good faith estimate could be a little off as your qualifications and loan program will ultimately have an effect on how much your closing costs will be. If I can be of further assistance, please contact me direct. Good luck!


Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales/ e-Pro Realtor
Fillmore Real Estate
Office: (718) 252-2000/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Mon Aug 19, 2013
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