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If the builder is paying $3000 towards closing costs, how much can we expect to pay after that? There's something on the mortgage appl. papers that is concerning me. It says "Compensation to Broker." What is that? It's in excess of $6,000. Thanks!
Quote:
Originally Posted by tlh1005
A lot depends on the lender. There are too many costs on the settlement statement to list but to name a few: Origination fee, doc fees, survey, pest inspection, prepaid interest/insurance/tax for x number of months (also depends on what the lender requires). The whole builder paid closing cost thing can be a bit misleading. I'd ask the builder to pay closing costs for whatever lender *I* chose. Lot's of times the closing cost incentive is tied to using the lender partnering with the builder. Some times those types of deals have tons of "junk fees".
Also, the part worrying you, "compensation to broker"; I am assuming is the commission for the sale that the Real Estate agent is paid.
A few years back, we were looking to purchase a small home for my in-laws. The house was 55K (an adorable small bungalow in DT Lillington). I called a broker and he told me that for loans under 60K, you have to go to the bank because brokers won't deal with a loan that low. He explained that because of predatory lending laws, the closing costs can't be more than 3% of the purchase price and at that price point, brokers won't make enough $$$ and won't sell loans that low. Is this true at all??? Is is a NC thing? Cause I can't find anything to back that up anywhere and I know people who just bought a house up north for 300K and paid 15K in closing costs!
A few years back, we were looking to purchase a small home for my in-laws. The house was 55K (an adorable small bungalow in DT Lillington). I called a broker and he told me that for loans under 60K, you have to go to the bank because brokers won't deal with a loan that low. He explained that because of predatory lending laws, the closing costs can't be more than 3% of the purchase price and at that price point, brokers won't make enough $$$ and won't sell loans that low. Is this true at all??? Is is a NC thing? Cause I can't find anything to back that up anywhere and I know people who just bought a house up north for 300K and paid 15K in closing costs!
There is some truth there.
And small loans fail to fund and close so often, it can be a real waste of time for the Broker.
I have heard different amounts for minimums, from $40,000 to $100,000.
It is a personal decision by the mortgage broker, or the firm, what they will do.
There is some truth there.
And small loans fail to fund and close so often, it can be a real waste of time for the Broker.
I have heard different amounts for minimums, from $40,000 to $100,000.
It is a personal decision by the mortgage broker, or the firm, what they will do.
Right but I guess I'm really wondering if there is a law that sets a maximum for the closing costs and if it's a state or federal thing?
More than likely it is the YSP (yield spread premium)
Sounds very high...but would be understandable if the loan amount was very high.
Quote:
Originally Posted by dinalkulp
If the builder is paying $3000 towards closing costs, how much can we expect to pay after that? There's something on the mortgage appl. papers that is concerning me. It says "Compensation to Broker." What is that? It's in excess of $6,000. Thanks!
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