Financing in Los Angeles>Question Details

Lb, Home Buyer in Los Angeles, CA

I have a loan fee question in LA.

Asked by Lb, Los Angeles, CA Fri Mar 21, 2008

I just had my offer accepted on an echo park condo and opened escrow. I am doing 100% financing with the seller paying the closing costs. I was pre-approver for a loan at 6.5%. I have great credit and I am using Cal-Fha for a $15K downpayment assistance. My broker sent me over the good faith estimate and it was a surprise to me that she is charging 1.5% origination fees on the loan. I was expecting 1%. Is this something she should be willing to reduce? and if not, is it too late for me to use another lender. I should not have a problem getting approved.

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Answers

5
What are the rest of their fees? The next guy might charge less points, but more junk charges. You can get another estimate to see if it is fair.
0 votes Thank Flag Link Sat Jul 19, 2008
I would definitely bring it up. If you are over two weeks out you could probably switch lenders.
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Sun May 25, 2008
It is not too late to use another lender but you need to check with your current lender if there is a penalty for doing so. Did you pay a fee to get the loan started and will you be able to get it back if you don't proceed with the process? Be careful with changing lenders also because your credit score might be affected.
0 votes Thank Flag Link Sun May 25, 2008
Hello LB,

It's not late for you to use a different lender. If you are still in your contingency period you might wish to get an extension so that you can shop for a new loan. Also, check with your lender and see if they will give you a copy of the appraisel as you may be able to use this with your other purchase. Otherwise you might get stuck paying for another one. Finally, let your loan office know that you think the fees are too high and you are considering using another lender. Perhaps they might have some flexibility with them.

Congrats on moving to Echo Park! You'll be happy there. It's a great neigbohood.

All the best,

Monique Carrabba
0 votes Thank Flag Link Fri Mar 21, 2008
Hi LB!
It is not to late to choose another Lender, but if that is the only problem you have at this time, I would try to negotiate the 1% with your current Lender.
They DEFINATELY have the authority to negotiate that with you and let me tell you, most Lenders will work with you if you tell them that you are going to check out your options with another Lender.
If you can get them down to the 1%, it will be much easier than starting out the process all over again with someone new.
Good luck and enjoy your new home!
Michele M Mayer
760-835-5391
mmayer@windermere.com
http://www.MicheleMayer.mywindermere.com
0 votes Thank Flag Link Fri Mar 21, 2008
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