Mortgage Fees

I needed to obtain a second mortgage to consolidate debt and do some home upgrades. Being in the mortgage business myself, I knew how much would be reasonable and how much would be too high. In this case, since I did much of the processing myself, I told the Loan officer that I would not pay more then .5% of the loan amount as an origination fee. For most loans, depending on the loan size and the amount of work done by the broker, 1% of the loan is a common amount for origination. I also informed the Loan officer I would not pay "junk" fees, as these are not legitimate fees and only pad the pockets of the Broker. I was willing to pay the Underwriting and Processing fees, but not the courier fee (since none was used).In the end we came to an agreement.

The quality was good, since everything was done on time and there were no unexpected changes at the end. I was disappointed the Loan officer decided to not join me at the closing, but since his fees were minimal, I was not surprised. I would recommend they be used again, but they are no longer in business. They are one of the many victims of the recent Mortgage crash.

Always, always, read what you are given. If you have any questions, make sure they are answered to your satisfaction before signing anything. Know your rights; you do not have to use the appraiser suggested by the broker. But if you do have a different one, they much be approved by the lender. Know that are required by law to be given a copy of the appraisal. Make sure the broker is licensed. A search on the Internet for your state's Real Estate Commission should lead you to how to look up the broker. If ever you don't understand something, know you can ask a Real Estate lawyer or someone who knows the industry. You have the right to change brokers and get everything back that you gave them. Make sure any originals given are given back at the end of the loan process. Listen to your instincts; if something is too good to be true, it probably is. And again, read everything.