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I in the process of purchasing a new home for 220,990 in Victorville.
My GFE totals 6,393.92
Origination fee: 1.0% at 2,209.92
Appraisal fee at 450.00
Flood life of loan fee at 19.00
Processing fee at 500.00
Tax service fee at 65.00
Final inspection at 125.00
Underwriting fee at 500.00
Notary fee at 80.00
Title Insurance at 1,000.00
Closing/Escrow/Settlement at 1,000.00
Sub-Escrow fee at 100.00
Escrow/Loan tie in fee at 125.00
Edd to 3rd party at 75.00
Recording fee-Deed at 70.00
Courier/Msngr-3rd party at 45.00
Wire Transfer-3rd party at 30.00
GFE= 6,393.9
Do any of these sound about right? Which ones should I negioate, if any? Appraiser fees? Courier? Title insurance?
That is a lot in fees! Did you get another quote from another broker?
I could be wrong but I believe this is what your lender is making :
* Origination fee: 1.0% at 2,209.92
* Processing fee at 500.00
* Underwriting fee at 500.00
I believe these can all be negotiated
These fees go to the escrow company ...
* Closing/Escrow/Settlement at 1,000.00
* Sub-Escrow fee at 100.00
* Escrow/Loan tie in fee at 125.00
Not sure about the other ones, they look standard,
* Edd to 3rd party at 75.00
The title insurance seems quite high to me (you should be able to shop title company).
I would get a quote from a different broker and compare line items. The ones that have different costs -- well, figure those are negotiable then
Your rate is very important as well. If you have a higher rate then they will be making a lot of YSP. If you're using a broker, then they will need to disclose it. If you're using a direct lender/bank, then you'll never know what they're making on the interest rate.
All these fees depend on your state...
Some states have really high attorney fees, and appraisal fees.
Quote:
Originally Posted by KabawL
I in the process of purchasing a new home for 220,990 in Victorville.
My GFE totals 6,393.92
Origination fee: 1.0% at 2,209.92
Appraisal fee at 450.00 - This is high for a home in the 200's. Should be around 350
Flood life of loan fee at 19.00
Processing fee at 500.00 - This is normal IF the lender is using an OUTSIDE processor
Tax service fee at 65.00
Final inspection at 125.00 - Who is this going to? Appraiser?
Underwriting fee at 500.00 - If you are using a broker, then it's standard with most wholesale companies. The actual wholesale lender charges this.
Notary fee at 80.00
Title Insurance at 1,000.00 - This is very high....you will definitely need to shop around for this
Closing/Escrow/Settlement at 1,000.00 This is very high....you will definitely need to shop around for this. Most attorney fees are around 500
Sub-Escrow fee at 100.00
Escrow/Loan tie in fee at 125.00
Edd to 3rd party at 75.00
Recording fee-Deed at 70.00
Courier/Msngr-3rd party at 45.00
Wire Transfer-3rd party at 30.00
GFE= 6,393.9
Do any of these sound about right? Which ones should I negioate, if any? Appraiser fees? Courier? Title insurance?
I always recommend getting GFEs from at least a few lenders to be able to compare. Have you looked into Bank of America's No Fee Mortgage Plus? It waives all lender fees and pays the title company (third party) fees. You pay discount points (if you want to buy down the rate), prorated interest (depending on closing date), escrow impounds (if you choose to escrow for taxes and insurance) and any HOA dues/fees. It is an even better deal if you're putting less than 20% down as there is no PMI and you only need 5% down.
I am looking to get a house from D.R.Horton. I was referred to Wells Fargo because they assist with 3% down. But, Im finding out that I dont think thats the whole truth. I say this because I received my paper work yesterday stating my GFE estimate along with my CALHFA paper to assist me with 3%. Therefore, the 3% isnt really from Wells Fargo right.
My loan states its a Conv 30 yr. Truthfully, I havent decided because I want a few payment scenarios before I decide. Those different scenarios would include but are not limited to... 30 yr fixed, Interest Only, (35yr)Interest Only 5yrs and 30yr fixed after that, etc.
I think Im going to make a few phone calls. I'll probably call Bank of America and see what they say. What exactly do I tell them? Should me agent be doing this?
You can see today's rates/points on BofAs website or call their 800# listed to get the same information. You should call some other lenders as well. I also built a house and the builder offered a $3k incentive to use their lender. When I faxed them my GFE and told them their lender could not match or beat it, they still gave me the $3k. You have to decide what you're looking for. Is the lowest rate most important? Lowest upfront cash required like low downpayment and closing costs? I would definitely at least look at some other lenders to be able to compare. You should tell them the purchase price and how much you expect to put down and ask what programs they have. If you know, you can tell them your credit score so they don't pull it. You probably don't want them to pull the credit unless you are actually applying.
It all depends on the rate... the 1% origination is typically standard... but that depends on the rate. If the lender is making YSP or SRP (not disclosed) with a higher rate than many times you can get the origination fee down. The opposite is also true, you can get a better rate by paying more fees.
The processing and underwriting fees are the only other lender fees. The rest are all 3rd party so to negotiate those you would need another appraiser, attorney, etc. The lender can not really negotiate what a 3rd party will charge, but you do have a choice to select your own people if they have the proper licensing.
Title and attorney fees are high (for NC) but in some states (NY and FL come to mind) the title insurance and state fees can be very high. If its someone you trust and was recommended talk to them about your concerns. If you have doubts or just picked them out of the phonebook or internet, try to get 2-3 quotes.
Remember lowest price isnt always the best (ask anyone who did stated income or ARM loans in 2005) its the value you get from the lender. You want someone that has reasonable fees/rates but also someone that knows what they are doing and will work hard for you... not someone that picked up a license 2 weeks ago because they think that selling loans is like selling tupperware but with bigger profits.
I just got off the phone with my agent and he said that I was sent to Wells Fargo because that would be the only way to get the 5,000 incentive towards closing cost. I had already put down a 4,000 deposit and my GFE comes out to 6,393.92. This stuff is a headache.
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