Mortgage brokers

[BlownBlass]

Anybody got any inside info on how to get some of these ridiculous cclosing costs in check? This is my first dealing with a broker and there are origination fees, processing fees, undewriting fees etc. Are these all on the up and up? Seems a few G,s is alot of money to fill out some paperwork. Any info on how to negotiate these will be helpful.

[martyo]

Everything is negotiable. Shopping around, although time consuming, is helpful.

[ckadiddle]

I used my credit union recently for a mortgage. Most of the fees were rolled into the loan. I had only to come up with only a few hundred up front fees for processing application.

[LordVader]

:mad2: You are right about those fees, and it's worse in New York. Just moved here three months ago and the closing costs went from 4,700 to just over 13K. I wish it had only been a few thou. That I could have taken, but in New York all parties concerned must bring a lawyer to closing. Sucks to be me!

[Big Joe P]

It's a very competitive business right now. You have to shop around. Some lenders offering "no closing costs" have a higher interest rate. Some charge "points" for a lower rate. Fees vary, check with your bank and see what they're charging to get an idea. One lender wanted $1000 for an appraisal, I knew I could get it done for $350, they removed the fee and accepted the appraisal I had done. Brokers make $$ on the paperwork, AND when they sell your loan. NEGOTIATE. It's not a matter of rolling the fees into the loan, it's about paying a reasonable price for them.

[DEFYANT]

With the way the market is, I would shop around. Ask friends and family for a reference to a trustworthy broker.

[SID210SA]

I thought we had a broker on this site....some one from around Salt Lake City Utah I believe....

[mattf309]

I work for a mortgage banker in Iowa. We are licensed all over the country. I would be willing to help out anyone on this site. For fellow marauder owners I would only give the best rates and customer service. Please send me a PM and we can get started.

[LILALLEYKATT]

I agree with martyo. You need to shop around. I would also let your loan officer know this. That way if he knows he has competion he will hopefully chop as much as he can off up front. Most of these guys are on a 50-50% split with the brokerage they work for. Typically a 1% origination fee is the norm. Typically I attend 30+ closings a year on the real estate side and I am seeing $3500-$5500 closing costs for transactons on homes under 200K and up to $7500 on those under 300K. I also have a close friend that owns a Benchmark mortgage franchise here in Ala and he has several very good loan officers that work the panhandle in Fla. Isnt North Port just north of Destin?? Just call him @ 205-936-3256 tell him your situation and ask him about the fees that you are being charged. I would say that theres a good chance he can beat whatever you are paying. If he cant he will tell you. Plus I want you to know that those couple pieces of paper can add up to a telephone book by the time it funds. I know Real Estate and the Mortgage procedures inside out so should you or anyone on this board ever have any questions or need a second opinion please feel free to contact me anytime....AL PHILLIPS

[BlownBlass]

Thanks all for your input. I don't have much shopping time as i need a commitment by 11/03. The whole thing is being a little rushed due to sellers requested closing date. I will try to negotiate said fees. The- one time costs are adding up to about $7000 on a $173,000 loan.

[Bradley G]

That is what the gouging lenders are hoping for, a time constraint.
I shopped around last turn, got the lowest recorded rate in ten years.
They(finance Co.) pulled a fast one at closing, I got up to leave, and they re-did the paperwork to match thier lower offer.


Thanks all for your input. I don't have much shopping time as i need a commitment by 11/03. The whole thing is being a little rushed due to sellers requested closing date. I will try to negotiate said fees. The- one time costs are adding up to about $7000 on a $173,000 loan.

[chrish]

simple:::::: PAY WITH CASH

[LILALLEYKATT]

I hear ya Bradley. You should have a contingency in your contract that says if you do not get the loan you want you can get your earnest monies back. I will review it for you if you like. Do not let them bully you to the closing table. Plus if whomever is handling the real estate side can get you an extension. R E has taken a huge downturn and everyone I deal with is alot more agreeable to the preservation of the deal today than they were 1 year ago. For every $1000 increase in price pay roughly $7 more per month for the life of the loan. Also you have to by law be given a GFE Good Faith Estimate. I find they are almost always on the low side of what is actually on the HUD-1 at the closing table. Also you should be able to get the HUD-1 which is like a window sticker on a new car -it tells you what you are paying all parties involved in the transaction...This should be available to you the day before or at least the morning of the closing. Fax a copy to me and I will review it and tell you if and where you are getting gouged. I dont want to slit any mortgage brokers throats but I will fight preditory lending every chance I get. At $7K on @ $173K deal I am sure theres some excess that can be saved by you with the flick of your brokers wrist...AL

[JamesHecker]

I have been a broker for 23 years. I do not loan in your state so I have nothing to gain by offering my help. $7,000 sounds like a lot for a $173,000 loan, but with points and impounds for taxes and insurance, along with other fees it is certainly possible. I would be happy to review the terms they are offering and the Good Faith estimate to see if it is reasonable. I can also tell you what to ask for to get the best deal you can. Feel free to call me at 661-295-7030 ext 734, or email james@covenantmutual.com.

James

[Bradley G]

I had been jammed several times at closing.(refinancing)
I was ready this last time.
They tried to add two thousand dollars, to the "Fees".
After we weathered the storm, I suggested we, (family) go out to dinner and celebrate!


I hear ya Bradley. You should have a contingency in your contract that says if you do not get the loan you want you can get your earnest monies back. I will review it for you if you like. Do not let them bully you to the closing table. Plus if whomever is handling the real estate side can get you an extension. R E has taken a huge downturn and everyone I deal with is alot more agreeable to the preservation of the deal today than they were 1 year ago. For every $1000 increase in price pay roughly $7 more per month for the life of the loan. Also you have to by law be given a GFE Good Faith Estimate. I find they are almost always on the low side of what is actually on the HUD-1 at the closing table. Also you should be able to get the HUD-1 which is like a window sticker on a new car -it tells you what you are paying all parties involved in the transaction...This should be available to you the day before or at least the morning of the closing. Fax a copy to me and I will review it and tell you if and where you are getting gouged. I dont want to slit any mortgage brokers throats but I will fight preditory lending every chance I get. At $7K on @ $173K deal I am sure theres some excess that can be saved by you with the flick of your brokers wrist...AL

[LILALLEYKATT]

I think your a real stand up kind of guy for inviting everyone on this site out to dinner...What are we havin...