Over $5k origination fee for a $169k loan?!!! What what?!
Senior Member - 3K
posted: Mar. 19, 2013 @ 11:14p
Girlfriend experience house?
posted: Mar. 19, 2013 @ 11:22p
brettdoyle said: Girlfriend experience house?Looks like 2 guys in the avatar.. just saying..
posted: Mar. 19, 2013 @ 11:30p
what is a good range that it should be for a 169k house, i was thinking that was rather high as well as processing fee and underwriting
posted: Mar. 19, 2013 @ 11:47p
Which lender is this?
I searched a bit and found that FHA loan origination fee should be about the same, which is 1% typically. So for a $169k it would be $1,690.
and no, people don't pay a mortgage broker fee unless there's a sucker stamp on their forehead. The process fee and underwriting is BS too.
One possible explanation is that they rolled point into the fee because a 3.5% 30yr is a very good rate (today). But again, the rate is not locked down until it is.
posted: Mar. 20, 2013 @ 12:05a
united wholesale mortgage... can i still get out of using this broker and get a loan through someone else if they are not willing to remove these fees or reduce them, broker is a friend but if origination fee should be 1.5 - 2k range and those underwriting and processing and broker fees are a joke then i am a sucker, never do business with family or friends, we close on the 28th
posted: Mar. 20, 2013 @ 1:35a
It was previously said, but origination should be 1% of mortgage amount, but also the mortgage brokers fee should come out of the origination. Your buddy is double dipping on you!
The rest (underwriting and processing) are more of a general problem...we all pay those if not getting closing cost credit. I'd only use a friend if he upfront said he was going to credit his fee back to me. It is just asking for situations like this. It could be as simple as he works for the worst possible mortgage company and doesn't know any better!
If you care about the money (will mean a big delay...did you get the GFE immediately after signing the application or just recently?), then definitely go elsewhere. You might be stuck with paying some fees (appraisal, credit report, etc), but if they didn't send the GfE within a few days after you getting them the application back, then they may have violated some laws and you'll be free and clear. If you want, post some specifics (when you asked and provided them what and when they asked and provided you what...to the day). Keep in mind this will likely sour the relationship with your friend, unless he will put your friendship over you burning him - if you don't pay those fees, then they will come out of his pocket. One of you is paying up some money if you walk away now.
posted: Mar. 20, 2013 @ 2:50a
Friend stated that he would give me 1000 back for using him and his wife as agent and broker, ran credit report on 2/28 without me signing anything, i was fine with it. Recieved fees worksheet, florida fee disclosure, uniform loan application, GFE, intent to proceed, Truth in Lending, anti steering, buyer sig authorization, certification and authorization etc. too much to list, these were dated 2/27 and i was told to put that date down when i signed, even though i didnt sign for a couple days. this was for a USDA loan. because i had to many assets i could not qualify for USDA so i went FHA. after looking at these documents it looks like he was rolling some of the closing costs into the loan to make it cheaper, i did not want this.
received new gfe for fha on 3/12 refused to sign because it said that settlement charges were 17k he told me i didnt have to sign it but it might delay closing. signed credit card authorization for appraisal on the 17th. just sent fha addendum and florida fee disclosure 3/18 which is below, he sent a fee worksheet a few days ago showing the origination charge being credited back, but the disclosure doesnt have it, and the GFE which im not signing doesnt have it, i think he might be just showing it to get me to sign and telling me its there and is going to pop smoke on me at closing because the worksheet says not gfe for informational purposes only, and is non binding,
my problem is, i want the house, but 5k is too high, and i feel he is definately trying to get over on me for 2k at least, we have 9 days to closing and if i try and push this back the seller might back out, i would like to get a loan from someone else within this timeframe, i have all paperwork needed, just not sure if it is possible,
hulamatt, All the "other charges" on your GFE looks good, insurance, escrow, taxes, PMI etc. However, they are overcharging you a lot on loan origination, and like other said they are also double dipping you on broker, processing and underwriting fees. I just did a closing cost estimate on TD bank's web site and they are only charging $618.45 for 30 yr $160K FHA loan in FL (you can ignore all the other fees, because those will be very similar to what you see in your current GFE). And TD bank's estimate is pretty accurate based on my client's feedback, they won't jack it up once you applied (like with other lenders I have seen in the past).
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