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My husband and I are shopping for a mortgage for our purchase of a single-family home in Nutley, NJ. I've seen posts recommending American Federal Mortgage company here, so I gave them a call on Friday.
For our 390k purchase price with $80,000 down payment, I was quoted 4.75% interest (no points, no origination fees), with total closing costs coming to $725 ($300 application fee and $425 "commitment fee" that includes appraisal, credit reports, flood cert., tax service...).
The gentleman I spoke with called this total cost "guaranteed" and said that "there is no catch." My attorney thought this sounded too good to be true, and that there would probably be some back-end fees that they're not disclosing.
I'd love to hear from anyone who has closed with this mortgage company... were there any surprises? My husband and I are full-time employed and will not have a problem documenting our income. Are there any other snags we need to worry about? We plan to close on November 17th, so we want to make sure that we can get the mortgage commitment without any delay.
Any advice or experiences would be greatly appreciated.
a coworker just worked with them a few months ago and there were no backend fees tacked on. They even wavied the commitment fee so all my co worker paid was the app fee. The only surprise my coworker encountered were fees added from thier lawyer. Example Even though ameican fed didnt charge an overnight fee, thier lawyer tacked on a fee for it.
No surprises on my end, although I used them about 3.5 years ago. A friend used them recently and I don't remember the exact details but I know he wasn't completely thrilled with a couple of things. But I don't think it was anything too bad. Sorry, I know that is vague. For me personally, the experience was all positive.
Wow.... Total closing fees only $725!?! That blows my mind.
I would be skeptical too. We are paying about $8,000 just in closing fees.
What about your title, survey, escrow, etc? That can't possibly all be included in that!?!
Wow.... Total closing fees only $725!?! That blows my mind.
I would be skeptical too. We are paying about $8,000 just in closing fees.
What about your title, survey, escrow, etc? That can't possibly all be included in that!?!
A lender can only authoratatively quote their fees (800 items), rest of them are approximate or estimation, anyway. So if one is comparing different lenders those (800 items) are the only numbers that should be compared, IMHO.
My husband and I are shopping for a mortgage for our purchase of a single-family home in Nutley, NJ. I've seen posts recommending American Federal Mortgage company here, so I gave them a call on Friday.
For our 390k purchase price with $80,000 down payment, I was quoted 4.75% interest (no points, no origination fees), with total closing costs coming to $725 ($300 application fee and $425 "commitment fee" that includes appraisal, credit reports, flood cert., tax service...).
The gentleman I spoke with called this total cost "guaranteed" and said that "there is no catch." My attorney thought this sounded too good to be true, and that there would probably be some back-end fees that they're not disclosing.
I'd love to hear from anyone who has closed with this mortgage company... were there any surprises? My husband and I are full-time employed and will not have a problem documenting our income. Are there any other snags we need to worry about? We plan to close on November 17th, so we want to make sure that we can get the mortgage commitment without any delay.
Any advice or experiences would be greatly appreciated.
They are rolling a substantial amount of fees into the loan. His statements could technically be correct. The rate is also well below market which also means you must be paying origination and/or buydown points on the loan. A point is 1% of the total loan balance in this case $3,100 with a loan balance of $310K. There is no free lunch. You are paying for it with a larger loan balance. Some people prefer as little out of pocket as possible at closing and finance these cost. However, some costs must be paid at closing. My guess is as much as 8K-10K in fees might be rolled into the loan amount with the info you provided.
Last edited by MoorestownResident; 10-05-2009 at 08:22 AM..
Hi Op, I'm a first time home buyer closed in August and used American Fed, it was the only pleasant company i dealt with in the whole home buying process. The quotes they give are legit and they are fast/efficient when i had closing date issues and such. Definitely recommended! PM me if you want the loan officers name i worked with.
I used Americian Fed Mortgage company a year and a half ago... There were no surprises I really enjoyed doing business with them being a first time home buyer i was very nervous and had a ton of questions I always asked them and they were always ready to give me and answer and go over everything 10 times if i wanted... What they quoted me was exactly what i paid them!!!
P.S. i also have the name of the loan officer i worked with and he was excellent... P.M. if you want his name and number... Good Luck!!
just got quoted a rate that was 1/8 better than my other quote today. their fees may have been lower, the other guy didnt get back to me with that which i dont appreciate. the guy was pushing for the lock. i dont really see the point in rushing it, tomorrow the rates may be better for all i know.
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