Loan "closing cost" and broker's compensation (real estate, rate, lender)

[RobertFisher]

I'm doing a 380K loan.

On the calculation table there is a "Borrower Closing Costs" for 4650.95. And then in a separate "CA Dept of Real Estate Disclosure" form it says broker will receive a compensation of $5700.

Can I ask:

1. Is the $5700 to be separately charged to me?

2. If so, how is it paid and why doesn't it go into the calculation table?

3. Is this amount reasonable? If not, is it negotiable?

I will be talking to my loan broker; I just want to have an idea beforehand. Thank you.

[LoanChic]

Brokers have to disclose how much they are making although the compensation to the broker is being paid by the lender funding your loan.

[LO28SWM]

Originally Posted by RobertFisher

I'm doing a 380K loan.

On the calculation table there is a "Borrower Closing Costs" for 4650.95. And then in a separate "CA Dept of Real Estate Disclosure" form it says broker will receive a compensation of $5700.

Can I ask:

1. Is the $5700 to be separately charged to me?

No, its paid by the seller through the loan

2. If so, how is it paid and why doesn't it go into the calculation table?

Its funded from your loan so technically you pay it but its directly paid out of the proceeds to the seller.

3. Is this amount reasonable? If not, is it negotiable?

The seller, because they "technically" pay it from the proceeds of their home sale are the ones who negotiate the rate of compensation. By this point the time for negotiations of commission is passed.

I will be talking to my loan broker; I just want to have an idea beforehand. Thank you.

You pay it over the life of your loan since its built into the house price.

ETA is this the real estate broker or the loan broker? I reread after I posted, What I said applies to the real estate broker. The loan broker is paid a commission by the lender and its their standard negotiated pay, they just have to tell you what it is.