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Old 12-26-2008, 12:51 PM
 
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I'm in the midst of securing a loan thru a broker. They quote the appraisal fee as $400. Does that seem high to you? Also, which fees are negotiable when working with a broker? Any of their fees? or any of the Lender's fees?

And WHEN do you have to do the final paperwork with the loan? How soon before closing?
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Old 12-26-2008, 01:56 PM
f_m
 
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I would say any fees are negotiable, but it depends on how much they are. I think in CA an appraisal was around $350 or so. I believe the loan docs should be done within a day or so of closing, but I think it will depends on who is doing the loan.
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Old 12-26-2008, 01:58 PM
 
Location: MID ATLANTIC
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It really depends on where you are located.....in the metro DC area $350 to $450 is considered normal on values up to 500K. Other factors that could influence the price, location, sometimes the more remote areas are far more difficult to handle, condos involve checking out the association and common property. I would not consider $400 high, at all. Lenders cannot pad certain fees, the appraisal fees included, any3rd party fees must be passed along at the fee incurred.

As for negotiating the fees, without knowing what is being negotiated, no one can really give advice w/out specifics. I can say, just because rates are lower does not mean business is flush. We still have many that cannot qualify for a mortgage, and the ones that can qualify, don't have the value in their home to support the loan. The Fed can bring down the rates so lenders are offering 3.5%, and there are still going to be many we cannot help.

Where I am going with this is here-----> the profit margins on loans have been trimmed to the bone with very little, if any, to spare. This is not uncommon in this kind of market, everyone is trying to give the best possible price out there. You can always ask for a fee to be waived, but be prepared to hear, "sorry, can't do it." It just may not be there. I have touched base with former-coworkers at more than one former employer, as well as many of my competitors, and they all report the same - any further cuts in pricing or fees will come 100% from the employee's pocket.

And, finally, don't forget, you get what you pay for and occassionally catch a break....that ultra low quote is only good if you can get it to closing. Once you get locked in and then just to reach the lender, you have to call the 800 black hole to get passed around, well, just don't be surprised. 800 numbers are infamous for being used as a training ground, on your loan.
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Old 12-26-2008, 02:03 PM
 
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An appraisal in rarely under about $300 and rarely much more than $700 so I think $400 is pretty close to the low side of average.

There have been other posts about how the compensation / fees are determined. Please use search. I think renriq posted just a few days ago...
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Old 12-26-2008, 02:17 PM
 
Location: Big skies....woohoo
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$400 is pretty average
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Old 12-26-2008, 02:40 PM
 
Location: central, between Pepe's Tacos and Roberto's
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I would like to point out that it depends on loan type as well. FHA/VA appraisals will run more than a conventional appraisal. FHA appraisals in Vegas run about $50-$100 higher than conventional appraisals.
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Old 12-26-2008, 03:13 PM
 
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Quote:
Originally Posted by kitty3 View Post
I'm in the midst of securing a loan thru a broker. They quote the appraisal fee as $400. Does that seem high to you? Also, which fees are negotiable when working with a broker? Any of their fees? or any of the Lender's fees?

And WHEN do you have to do the final paperwork with the loan? How soon before closing?

like most people in the real estate and mortgage business, for us residentials, an appraisor is a dime a dozen.

People have to eat, so shop for someone who will do it cheaper and is certified for the bank.

On a lender, they will charge a few fees based on the loan.
The broker, any fees they charge are negotiable and mostly full profit..except..
real costs like 10 dollars for a credit report, things they get that you would have to pay for anyway like a flood certifercate and stuff.

However, watch for gouging.

Your cost of loan is in no way affected by your credit. Whether your credit is 500 or 850, there SHOULD be no change in cost. But they try to rape people with bad credt.

Where they try to make their money is the initial interest rate they throw at you.

The mtg broker will add on top of what the lender says they can give them. Both of these are negotiable...they are. And you can shop around as everyone is dying for business.

Demand a better rate or just leave the lender and the broker. Demand lower costs.

The amount of paper work is very small, as is the time invested, for both lender and mtg broker. So for a few hours work you are gonna pay them how much in fees and higher monthly payments?

In business all is negotiable. I am a mortgage broker and a real estate broker. Do not decide in one sitting and discuss with friends and an advisor that is not part of the deal to get a better picture.

Get a copy of your report along with your scores. Use that to shop brokers WITHOUT them pulling your credit report. Eventually you will find a decent one.

Don't ask me, because no matter what your situation I will say you are crazy for buying a home. If you are refinancing I would first look if you are upside down.

Also, go to one or two lenders. Use the two lenders and 4 or 5 mtg brokers against themselves to find the best deal. You will be surprised how low the rate and fees go when you are not a lay down client.

This is a 30 year investment....don't let anyone rush you or bully you.
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Old 12-26-2008, 03:56 PM
 
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Default Delusion...

Quote:
Originally Posted by Thatguywho View Post
...

... leave the lender and the broker.
...

.... I am a mortgage broker and a real estate broker. ...

Don't ask me, because no matter what your situation I will say you are crazy for buying a home. ...
Not much more to say...
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Old 12-26-2008, 07:15 PM
 
Location: OK
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Quote:
Originally Posted by Thatguywho View Post
like most people in the real estate and mortgage business, for us residentials, an appraisor is a dime a dozen.

People have to eat, so shop for someone who will do it cheaper and is certified for the bank.

.
That may be so, but not all appraisers p4roduce the same quality report. As with everything else, you get what you pay for.

I, for one, will not participate in the game of dialing for dollars.
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Old 12-27-2008, 12:18 PM
 
Location: MID ATLANTIC
8,421 posts, read 21,679,366 times
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Please see my responses in red.

Quote:
Originally Posted by Thatguywho View Post
like most people in the real estate and mortgage business, for us residentials, an appraisor is a dime a dozen.

People have to eat, so shop for someone who will do it cheaper and is certified for the bank.

This is so far off, but the quick version is borrowers do not get to select appraisers and now, most loan officers don't either. Many banks have gone to 3rd party services that a broker or correspondent or mortgage lender must use for any loan that is submitted to that bank for approval. This is not fantasy. The particulars of the legislation may be boring to many, but new rules and regs are in place or on the way. Another effort to curtail fraud.

On a lender, they will charge a few fees based on the loan.
The broker, any fees they charge are negotiable and mostly full profit..except..
real costs like 10 dollars for a credit report, things they get that you would have to pay for anyway like a flood certifercate and stuff.

It's illegal to mark up or pad any 3rd party fees that are passed along to the consumer.

However, watch for gouging.

Your cost of loan is in no way affected by your credit. Whether your credit is 500 or 850, there SHOULD be no change in cost. But they try to rape people with bad credt.

Loans are now priced according to risk. This is even true of FHA loans. All one has to do is read their guidelines on the internet to see that even our government has limits on risk. Additionally, mortgage insurance cannot even be obtained for the lowest of scores. The more moderate scores are going to pay more than someone that is not high risk. Kind of like auto insurance, why should those w/ good records pay for those w/lousy credit histories?

Where they try to make their money is the initial interest rate they throw at you.

Do you have any clue about what you have said here?

The mtg broker will add on top of what the lender says they can give them. Both of these are negotiable...they are. And you can shop around as everyone is dying for business.

No, not everyone is dying for business. There are many of us that know what we are doing and do it quite well. We chose not to do it for free. If I do one for free, it's because a long time realtor referral source needs a customer rescored, needs to get the customers points up by 100, so that they can get a loan. Many lenders do not do rescores because we cannot charge the borrower for these services (bet you didn't know that one either).

Demand a better rate or just leave the lender and the broker. Demand lower costs.

Demand? I'll give you the name of my competitor. Ask me if I can recommend where you can save you some money, and I will lay out the entire process and show you how and where to shave and save. And not just for this closing, but for as long as you own the property.

The amount of paper work is very small, as is the time invested, for both lender and mtg broker. So for a few hours work you are gonna pay them how much in fees and higher monthly payments?

Again, this opinion is based upon your knowledge of processing government applications?

In business all is negotiable. I am a mortgage broker and a real estate broker. Do not decide in one sitting and discuss with friends and an advisor that is not part of the deal to get a better picture.

How can someone call themselves a mortgage broker and a real estate broker and in the same breath advise someone they are crazy for buying a home?

Get a copy of your report along with your scores. Use that to shop brokers WITHOUT them pulling your credit report. Eventually you will find a decent one.
No one needs a credit report to quote a hypothetical. It's a well known fact no one can accept someone else's credit report, so why even bother. Tell me your score and we can work with that. If my report comes in w/ a different score, my report trumps.

Don't ask me, because no matter what your situation I will say you are crazy for buying a home. If you are refinancing I would first look if you are upside down.

Again, in the business? And since I have questioned that, where pray-tell can one get a loan where the price is the same for a 500 loan as it is for an 850 loan? One investor, please.

Also, go to one or two lenders. Use the two lenders and 4 or 5 mtg brokers against themselves to find the best deal. You will be surprised how low the rate and fees go when you are not a lay down client.

Maybe in the last market you were successful in, but this day and age, our job is heartbreaking, it's hard not to feel the tears when you tell someone not only is the equity gone, but their qualifications would no longer get them into the home they have. It's about 45 seconds and then you can see the dawning in their eyes, they are probably going to lose their home. So yeah, go ahead, tell people to play lenders off each other. Now that they are down and out, that's the exact attitude they want to have.

This is a 30 year investment....don't let anyone rush you or bully you.

This is perhaps the only statement I can halfway agree with......don't let anyone bully you, but know what you want and need, and if you get it, jump on it. It may be gone tomorrow.
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