Any there any costs/fees/whatever else associated with the loan origination process?

Asked by Rhayward, Brooklyn, NY Mon Mar 11, 2013

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Michael Denn…, Agent, Queens, NY
Tue Mar 12, 2013
Rhayward, under our exclusive Mortgage for Champions program all bank/lender fees are waived. We only collect the cost of your appraisal. This program will lower your closing costs by 1000s compared to other lenders and is compatible with FHA and conventional loans. You will be responsible for the standard closing costs included on your attorney's title bill.

To avoid any surprises, I suggest that you consult with a licensed mortgage professional to get preapproved and review expected closing costs. I have extensive experience helping buyers become successful homeowners. For more info or assistance, please contact me directly at 917.699.0183. Follow me on twitter @mdenniston247.

I value your opinion, please hit the thumbs up if my reply was helpful. All the best!

Michael Denniston
Licensed Loan Originator l Sales Manager
NMLS #24076
Residential Home Funding Corp.
New York
Company NMLS#34973
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Derek W, Agent, Mount Vernon, NY
Sun Mar 24, 2013
Hello Rhayward - Working in the real estate industry has exposed me to various finance options available to potential homeowners. One lender in particular charges no more than $1500 in origination fees. I find this to be great for my clients who have limited savings.

I do realize that some mortgage bankers and brokers on this site become very defensive when there is a suggestion posted that highlights the low origination fees that is charged by other lenders. There is no reason for this. Origination fees like everything else is negotiable. Shop around and see what is best for you and who will give you the best deal.
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Gregorio Den…, , San Diego, CA
Wed Mar 13, 2013
There are costs and fees associated with EVERY mortgage. Don't be fooled by snake oil. Creative, cute sounding names may lull you into a sense of peace and harmony, but when you look under the hood, they all have fees. How one pays for the fees is what is important. Any lender/broker/direct lender/mortgage banker can give you a "no closing cost" loan. You can always take a higher rate and have fees covered for you. You can always increase your principal balance and pay fees that way (assuming you have the equity) and you can always pay the fees yourself at closing.

Do not be fooled by the Wheaties mortgage or any other that claims you don't have to pay; no one works for free.

If you ever find someone truly willing to originate a free mortgage for you, I suggest you hide your wallet, tether the soap and run for the hills because they are coming for you!
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Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Mon Mar 11, 2013
You have a few things. The biggest are origination and/or discount points, which equal to 1% of the loan amount. An origination point is a fee that is charged by the lender as compensation. Discount points is a fee charged in exchange of a lower interest rate, obviously the lower the rate you're seeking, the more of a discount fee or discount points you'll have to pay.

In addition to these points or origination fees, you'll also have appraisal fee, credit report(s), flood cert and maybe a couple others depending on where you're located and what lender you're dealing with. Some have more fees than others.

I strongly suggest you meet with a Loan Officer and see what the numbers are. My bank does NOT charge you points. Even though we offer low and competitive rates, we always have the option of paying discount points for a lower rate. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648
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Tim Moore, Agent, Kitty Hawk, NC
Mon Mar 11, 2013
You will have loan origination points which is usually 1 point or 1% of the loan. the biggest cost are the discount points which can be 0 to 2 or 3 or 4 points. The lender decides based on the rates they quote you. A loan with no points will be higher (example maybe 4.5%) than one that has a loan origination point and 2 discount points (4.125% for example). More points means a lower rate.
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R Wright, Other Pro, NY,
Mon Mar 11, 2013
There are several fees associated with the loan process. Your single most significant fee is often the loan origination fee also referred to as points on the loan. It is best to work with a lender that will lend with minimal or no points. If you have any additional questions please contact me directly at 914-299-0420
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