Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
That is certainly true, but fees can vary widely between different lenders. I'd rather start my negotiations with one whose fees are reasonable to begin with. Some lenders fees are simply ridiculous.
Is it usual and customary to have an 'application fee' for all lenders?
Also, how do they figure out the title insurance? Mine seems sort of high, as does the recording fee.
One more Q: We have prepaid interest and hazard insurance amounts - does everyone have to do this and how do they figure it? (prorated amounts for the remains of the year?)
Title insurance is based on the amount of the loan. Recording fees are determined by the county register (or whatever that office is called in your area) and are typically determined by the amount shown on the deed (either purchase price or loan amount).
Prepaids are necessary since, for example, you may have taxes due in 8 months after your loan is closed - so you won't have a full year's worth of escrow payments made at that time.
Title insurance is based on the amount of the loan. Recording fees are determined by the county register (or whatever that office is called in your area) and are typically determined by the amount shown on the deed (either purchase price or loan amount).
Prepaids are necessary since, for example, you may have taxes due in 8 months after your loan is closed - so you won't have a full year's worth of escrow payments made at that time.
Application fees are very common, but not universal. I think the idea behind them is twofold; they offset the lenders time and expense if the loan doesn't close, and they keep applicants from shopping around - especially if the fee is very large.
Personally, I wouldn't pay an application fee unless it was very small....
Title insurance is based on the amount of the loan. Recording fees are determined by the county register (or whatever that office is called in your area) and are typically determined by the amount shown on the deed (either purchase price or loan amount).
Prepaids are necessary since, for example, you may have taxes due in 8 months after your loan is closed - so you won't have a full year's worth of escrow payments made at that time.
If your LTV os 80% or lower you are not required to escrow. We don't.
Depends on the lender. Many - probably most - require escrow for the simple reason that they want to make sure the taxes and insurance are paid. I believe any loan sold on the secondary market (which is MOST 1st mortgage loans) must have taxes and insurance escrowed. If a lender is holding the loan in their own portfolio, it's entirely at their discretion.
Depends on the lender. Many - probably most - require escrow for the simple reason that they want to make sure the taxes and insurance are paid. I believe any loan sold on the secondary market (which is MOST 1st mortgage loans) must have taxes and insurance escrowed. If a lender is holding the loan in their own portfolio, it's entirely at their discretion.
Our current loan is a Fannie Mae loan so it was sold on the secondary market. Again if you have 20% equity you can choose if you have less then you are required to escrow.
The way it works with insurance is that they require you submit proof that the insurance was renewed. If you do not pay it or cancel it the lender can purchase insurance and charge you for it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
