Advice on GFE fees (loan, interest rate, California, approval)

[mantismom]

I’m looking for some expert advice on these fees. We are going through the process of getting a loan after Wells Fargo was unable to finish our loan due to DPA ending as of 10/01/08. These are the fees on a GFE we got from a broker. Does everything look legitimate? We are located in the High Desert, Southern California. Thanks!

801- $1,905.74
802- $1,905.74 (Loan discount, what’s this??)
803- $ 400.00
804- $ 16.66
808- $ 750.00
810- $ 750.00 (Processing fee, is this normal?)
811- $ 699.00
812- $ 299.00 (wire transfer fee, seems kinda high)
1101- $ 450.00
1105- $ 50.00
1106- $ 150.00
1108- $ 50.00

1201- $ 110.00

[brokerdave]

everything looks normal. the loan discount means you are paying that much to buy the rate down. every 1% bought down gets you .125% lower rate.

[mantismom]

Thanks for your prompt reply!
Seems as though this broker's fee's are less than Wells Fargo's.
We are waiting by the edge of our seats for the final loan approval before COB Friday or we loose our chance for the DPA. Again, thanks!

[VictorBurek]

Actually, each discount point you pay will buy the rate down .25%, not .125%. The only fees that look off to me would be the processing fee is rather high, should be around $500 and the wire transfer fee is real high. It might be different from state to state, but in Texas the wire transfer fee is 22.50.

Post back with the rate they quoted and your credit score and you will get better advice.

[rcarrillo]

Well, some of the fees might be a little high... but its hard to say without knowing your exact qualifications and interest rate. For example the fees that might be great on a 6% rate might be a rip off on a 7% rate.

There is always a tradeoff between fees and rates, not just the discount points but also on origination fees and other lender items.

[mortgage king]

processing,uw and app fees usually run about 1,000 combined but there is no way to make an assessment unless you tell us your rate and other factor like income, loan amount, reserves and credit score...

[mantismom]

Interest rate is 6%
Credit scores are average, 650 for both of us and we only put 1,500.00 up for good faith deposit. We have a good income around $6800 month combined and the loan is for 180k

I also though the wire transfer fee was high, is this negotiable?

[brokerdave]

Originally Posted by VictorBurek

Actually, each discount point you pay will buy the rate down .25%, not .125%. The only fees that look off to me would be the processing fee is rather high, should be around $500 and the wire transfer fee is real high. It might be different from state to state, but in Texas the wire transfer fee is 22.50.

Post back with the rate they quoted and your credit score and you will get better advice.

actually it depends on the lender and can be anywhere from .125-.375, but you should always be in the habit to quote with the benefit of the doubt.

and remember the GFE is estimates. if he is good at his job he will quote it high, so that when you get to closing fee's will be lower.

[davidhomes]

Some of those fees look high to me but Im in Florida. Look at the fees going directly to the broker. Those are usually the fees that are negotiable. You can also have them remove the discount point if you dont want to buydown the rate. Good luck in your endeavors!!!!

[Kathleen1971]

That wire fee is insane. Most of the ones I see here in Florida are around $ 25 - $ 50. Processing fee is high as well. Mine is $ 395 and while I know some consider that low I still think you are being quoted way too much. Definately speak with your broker and see what he/she can do.