Buying a o/o condo in LV. Is it normal for the realtor, loan officer, loan company to all get a 1% orig fee?

Asked by ragtimegal60, Las Vegas, NV Thu Jun 19, 2014

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Diann Tonnesen’s answer
Diann Tonnes…, Agent, Las Vegas, NV
Thu Jun 19, 2014
As has been pointed out below. Realtors and lenders are two completely separate entities.

The Realtor is getting paid for helping you purchase a property which includes: helping you find the right property to fit your needs, writing up the contract and negotiating on your behalf, and helping you through various aspects of the transaction (inspections, review of HOA documents, walk through and closing paperwork.)

The lender is getting paid for helping you obtain financing for your purchase, which includes: getting your financial documents together, helping you iron out any credit issues and figuring out the best loan program according to your goals and specific needs.

A buyer's agent is usually paid by the seller, BUT could be paid by the buyer as well. This is very common on low priced properties where the commission paid by the seller may not be enough to cover the agent's costs and allow him a decent rate for his/her time. (Remember, the agent splits the commission paid with his/her broker and our of his/her portion has to pay for gas, licenses, errors and omissions insurance, etc.) It may also occur on a higher priced property where the commission has been reduced by the seller and the commission being paid is again not enough to pay for the agent's costs and time. This should be discussed thoroughly before the buyer signs a purchase contract.

The lender makes his/her money by the points paid up front or in the rate of the loan. The lender basically locks in chunks of money from investment groups and makes a profit on the difference between what they "buy" the money for and what they charge the borrower.

This is where it really pays to shop around! Some lenders charge points and their rate is just as high as a lender charging no points. But it may be that a specific lender has an in house program that no other lender has for a client that is not finance-able through the standard types of loan available..

Personally, our team uses All Western Mortgage. They not only charge zero points, they also do not charge "processing fees" or "underwriting fees" which can really add up! Their rates also are competitive with other lenders that charge points. You could call Eric at All Western at 702-353-6011 to get a quote to see how competitive they are, or go to:

http://www.greatlasvegashomes.com/preferred-mortgage-lender.php

and fill out a short online application.

Hope this helps!

Diann Tonnesen
Berkshire Hathaway HomeServices
sold@GreatLasVegasHomes.com
702-985-7654

The Tonnesen Team - with over 30 years of experience helping families call Las Vegas "home!"
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, ,
Thu Jun 19, 2014
The lender and the Realtor are 2 separate entities in the transaction. If you are buying the property, the sellers agent works the deal with the seller for a set commission consisting of generally 4-6%. They then "generally" split, or agree to a % split for that commission paid by the SELLER. The lender is his own entity. 1% origination is a standard origination charge from a lender. It also allows for the best rates and pricing. We can all charge ZERO like the agent states below, but we will still get paid by charging a higher rate. I always put my best foot forward and allow you to make an educated decision for what is best for you. Sometimes those who advertise they are the "cheapest", are not always the best thing. Weigh your options. If you would like a second opinion I would be more than happy to discuss your options. I am local here in Las Vegas, and will set an appointment to meet with you anytime. I look forward to your call. Nathan Kessler 702-522-6745 City First Mortgage Services NMLS# 377217
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, ,
Thu Jun 19, 2014
Hi Ragtimegal,

No, that's not normal.
Your agent is going to be paid by the seller, not you. Your lender & loan officer are really one in the same so if you're being charged an origination fee it would normally be just the 1% not 1% for the loan company and an additional 1% for the loan officer.

You should always be given the option of whether or not you want to pay points. If you do pay points, it should lower your rate

Check out my recommendations here on Trulia from some of my past clients by clicking the following link. http://www.trulia.com/profile/johnburke/#__rec


Please feel free to contact me for more information or help.


John Burke
Senior Mortgage Banker
Great Plains National Bank
(877)228-9069
0 votes
Hank Lauzon, Agent, Las Vegas, NV
Thu Jun 19, 2014
It sounds like your getting hit from all angles and the answer is no.
This does not seem normal at all...

Do you have a broker agreement with your agent ?
You need to review it for any additional charges besides the commission.
Was it explained properly to you ?

How close are you to the closing date ? There may be time to switch lenders..

Have you used up all your options to back out of the contract ? This may be a way to step back and review your relationship with the Realtor and lender that you are using.

I have some great lenders that I work with and would be happy to recommend.

Feel free to call or email me when you have a moment...

Hank Lauzon
Signature Real Estate Group
9525 Hillwood Dr
Suite 120
Las Vegas, Nv 89134

Cell: 702-449-0899
Fax: 702- 799-9598
E-mail: HankLVrealestate@aol.com

Never look down on somebody....
....Unless your helping them up
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