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Old 10-04-2006, 11:21 PM
 
1,692 posts, read 2,860,686 times
Reputation: 1171
Why use a mortgage broker? You can easily shop around and find a lender that has a good rate and NO b.s. fees. My lender charged me an application fee of something like $300 which went toward the credit report fee, appraisal fee, flood certification, etc. No "origination fees", no $700 "processing fees".

The lending institution makes money through the interest that you pay. There is no broker involved, so no padded fees. And you deal directly with the lender's mortgage department, and there is no shady business involved...

Just my 2 cents.
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Old 10-05-2006, 07:29 AM
 
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
3,217 posts, read 4,373,692 times
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Quote:
Originally Posted by Cassie View Post
Well, they do make a commission off the loan -- and a larger one if they sell it to another company. We don't pay origination fees and we've only paid a modest processing fee. As in $199.00 - not $700.00. No commitment fees.

Geez- those fees are outrageous to me! A 1 % origination fee and $700 in processing or commitment fees?! Never paid them --- didn't pay them in N.C.

I didn't forget about escrow when quoting the "generally" speaking about 3 % of the purchase price in closing costs. Our experience.. guess we've been either smart or lucky in shopping around and finding good lenders.


Regards,

Cassie

Cassie (and others who paid 0 points). Just so I'm reaidng it right, are you saying that you didn't pay any points, and solely the fees related to closing (legal, titling, etc., etc.)? And that your overall costs total roughloy 3% of the purchase price? Just want to ensure I'm reading this correctly.

I've seen a few 0 pt offers but then when I got the good faith estimate, I've just seen a shuffling of $$ to other related fees.

Either case, thank you for the insight.

In regards to the original poster, if you have an 800 FICO you are the "chosen one". The one's all lenders want to give money to . Either case you can do stated income (where you tell them what you make and it's not verified), or you can do no doc (which is higher than a traditional W2 verified loan). For some stated is good, because you simply need to produce a bank statement showing you have the down payment, and have a good FICO. I've found that you *can* get stated income loans that are either equal to, or almost insigifcantly higher than a traditional loan (like .05% higher). You do have to search and search and search and search. What worked for me is weeding down the offers to about 4-5 lenders you like (i.e., you like the terms). At the very end I went with a local NC broker. I carried 4-5 lenders down to the final week (literally) because in the past, something always comes up, and promises are broken, and it was nice to have something in your back pocket.

Keep us posted.
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Old 10-05-2006, 01:40 PM
 
Location: State of Bliss :-)
463 posts, read 1,088,859 times
Reputation: 162
[quote=Miker2069;114657] Cassie (and others who paid 0 points). Just so I'm reaidng it right, are you saying that you didn't pay any points, and solely the fees related to closing (legal, titling, etc., etc.)? And that your overall costs total roughloy 3% of the purchase price? Just want to ensure I'm reading this correctly.

I've seen a few 0 pt offers but then when I got the good faith estimate, I've just seen a shuffling of $$ to other related fees.

Either case, thank you for the insight. [QUOTE ]

Hi Mike,

Yes. Zero points. Zero origination fees. In the last 7 years we've bought twice, re-financed once when interest rates went down to 5 1/2 %.

The reason I said "generally speaking" in around 3% of the purchase price of a home in closing costs is that it can depend on several things. Pre-paids, for example. This time when purchasing our home we paid for the credit check, appraisal, home inspection, well, septic and termite inspection, radon check prior to closing. Last time we did not, except for the credit check and appraisal. The rest were included in the closing costs.

Termite and well water checks were required by law in VA and it was the seller's responsibility to pay them- not the buyers.

North Carolina has tax stamps. If memory serves me they are $2.00 per 100 of assessed value, but memory does not serve me in remembering if we paid them, if the seller did or if we both did I'll dig out our HUD closing statement later this evening and take another look at the specifics that we paid.

I do remember that along with the Attorney's closing fee, there was a fee for the title search ( 75.00 I think) and a courier fee of $25.00 to get it to the courthouse to record the new deed ASAP after closing. We also paid for personal title insurance, (our own) in addition to that which is required by the lender. Remind me to tell you our "we lived in the barn for 10 days- not knowing how long it was going to take to resolve it " escapade due to a mistake the previous sellers' Attorney had made in their closing when they bought the house. The only one who enjoyed living in the barn was our dog! The sellers had personal title insurance which paid their expenses- and we learned how valuable it is!

We were responsible for a portion of the county taxes, of course, from the date that we bought. That was included in closing costs. Escrow for homeowner's insurance and taxes.

Also, my understanding from our lender ( whom we've used twice now) is that everything is credit driven. Our FICO's are also in the 800's.

Buyers may pay more than 3% if they pay points for a lower interest rate. We've never done that. Not saying we wouldn't at some point in the future- just never have.

As far as junk fees are concerned, when we got the good faith estimate of closing costs this time, there was a 1% origination fee listed. I called the lender because we had previously discussed this and we weren't going to pay any origination fees. It's against my religion. He said that was the way the computer automatically generated it. I told him I wanted a written, signed, dated addendum that we would not pay any origination fees. I got one. There weren't origination fees in either the loan documents or the closing costs.

I'm a little surprised that people are paying junk fees to mortgage brokers but then... life is a learning experience. Remind me to tell you my mortgage broker from hell story too, and how we fired him 10 days before closing 'cause he was that BAD. Hadn't lifted a finger to do anything. That was years ago. I will agree with Tarp that people are generally better off going directly through a lender or credit union or doing what you did, Mike, shopping several, and getting the best possible deal.

Hope this helps,

Regards,

Cassie

Last edited by Cassie; 10-05-2006 at 02:31 PM..
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Old 10-05-2006, 01:42 PM
 
Location: Colorado
10,010 posts, read 11,446,114 times
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I have a question if any one knows, what is a Bridge Loan and how does it work?
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Old 10-05-2006, 03:16 PM
 
Location: State of Bliss :-)
463 posts, read 1,088,859 times
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Default Bridge Loans

Quote:
Originally Posted by Nea1 View Post
I have a question if any one knows, what is a Bridge Loan and how does it work?
Yes. Bridge loans can be very high risk. Unless I had an employer who was willing to pay one due to relocation, or I was fully prepared to pay when the bridge loan came due, (usually within 90 days) I would not enter into a bridge loan.

Do a google search for more specific information.

Regards,

Cassie

Last edited by Cassie; 10-05-2006 at 04:41 PM..
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Old 10-06-2006, 05:14 PM
 
36 posts, read 68,919 times
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Default thanks

Thanks for all the replies....I have owned a few properties before (in the uk)..just not real familar with how it is done on the east coast...all the fees seem like one big rip off to me...as basically back in the uk there are very few fees involved.....So anyone want to recommmend a broker or lender?...p.s I will be upfront and state I'm kinda of a tight wad!...once again thanks for all the help...
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Old 10-06-2006, 05:18 PM
 
Location: Cornelius
2,314 posts, read 22,790 times
Reputation: 287
Must be from Essex or a Spurs Fan
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Old 11-02-2007, 12:11 PM
 
Location: Cary, NC
35 posts, read 88,319 times
Reputation: 40
I'm a lender - and you can definately get a loan with no points or origination fee - or huge commitment fees. We offer them and have done hundreds of them.
Regarding moving here - I suggest you contact a lender quickly- certainly prior to the end of the year. Preditory Lending Laws change in this state effective January 1 and doing a no-doc or stated loan will be incredibly difficult after that time - although there are now "process styles" that will allow these loans to work going forward. The best advice is to talk to a lender NOW and go over options. Don't lie. Let them represent you ethically...
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Old 11-02-2007, 12:56 PM
 
74 posts, read 116,131 times
Reputation: 50
Default Honest Lenders

Quote:
Originally Posted by VickiR View Post
My lenders have told me that if my clients have 2 of these 3, they can get a loan:
1. Good credit score
2. Money for down payment
3. Job

Since you'd have 1 and 2 but not 3, you'd qualify, based on that info.

As for closing costs...typically there is a 1% origination fee. Attorney charges $475. Also, most people elect to have their homeowner's insurance and taxes taken out along with their mortgage each month, therefore you'll need escrows. Total closing costs AND escrows would be less than $6,000 (rough estimate). I can put you in touch with a lender, by phone, if you have any other questions. My lenders are good honest people and will be upfront with you on all your questions. Vicki
If you could PM me with your connections to a good lender, I would be very appreciative. Thanks.
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Old 11-02-2007, 03:19 PM
 
25 posts, read 87,605 times
Reputation: 17
If you have a solid credit score, I would look no further than penfed (Pentagon Federal Credit Union). www.penfed.org.
They offer zero closing costs and don't have any BS fees. Pretty straightforward lender. Being a member is easy, you have to pay $20 to be a member. I have a pending refi with them since they couldn't do a quick close when I bought my home. I would suggest going through the GFEs and talking to the lenders about bringing down or taking off the junk fees. In this day and age, they will be more than willing to do it.

Tom
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