Been shopping around in the market for a while and finally tripped on this whole UMB idea, and I like it. But now I have to wonder how much is a fair fee for the UMB broker that I pick. I have a generally tougher case than normal, I would be considered a sub-prime case. The purchase price of the property will be about $330K. I've read around that a normal fee would be around 2 points for broker... so does $6400 really sound fair for a broker to make on a deal? I mean it sounds high to me...
2007-01-08 14:14:33 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
In regards to the brokers paying fees, I am under the impression that I will be paying all of the lender's fees.
2007-01-08 14:20:07 · update #1
More in regards to fees -- these fees are also listed as part of the fees, in addition to the brokers fee:
"ALL lenders have four basic fees. First is an underwriting fee ($495-$895). This fee is simply for the lender to verify that everything is true and correct in your file, and to underwrite your loan.
Second is a tax service fee($81). This is to notify the lender when the taxes are due.
Third is a wire transfer fee ($35) to overnight the funds into the closing agents account to dispurse for you.
Fourth is a flood certification fee ($13). This certifies to the lender that you are either in or not in a federal flood zone. If you are in a federal flood zone, you will be required to get flood insurance.
Credit Report: $7.98 for one borrower, $15 for two borrowers
Application Fee: $465
Processing Fee: $250"
In other words, what I'm saying is that in addition to these fees, what should I be comfortable paying? All fees will be disclosed and guaranteed before I choose the broker
2007-01-08 14:23:34 · update #2
djdraven9 : I understand that. The point here is that the broker is agreeing to a set fee. If its two points that we agree to, and the bank pay x points on the back end, the difference is paid by me if less than the agreed fee, or would go TO me if more.
2007-01-08 14:26:16 · update #3
Usually brokers get a point on the front from you, and they try to get one from the bank as well. Keep in mind that most brokers pay for processing and other fees out of what you pay them, so it isn't all profit. I think it sounds fair.
2007-01-08 14:19:09 · answer #1 · answered by moonman 6 · 0⤊ 0⤋
Up front does not spell best, necessarily. Two points isn't bad for a sub-prime loan, but many brokers may do for a flat fee of say $3000. But also, some places may get you a par rate lower than others for the same up-front fee.
Whether you pay up-front or the bank pays the broker doesn't matter - the consumer really pays the fee in either up front costs or higher rates.
Bottom line - shop for someone you can trust and will work for you and charge a reasonable rate and fees.
www.fnmshome.com
2007-01-08 15:45:44 · answer #2 · answered by walkinandrockin 3 · 0⤊ 0⤋
I wouldn't just accept 2 points as either good or bad. What rate are you getting for the 2 points compared to another lender? You did shop around right?
Compare overall fees to rates.
Never pay money upfront to a company and never pay an application fee. Why would someone charge/pay an application fee when there are 1,000+ places that will take your application for free. You may need to pay an appraisal deposit early in the transaction, but make sure they can approve you first and that you plan on using them. Then pay for the appraisal.
Good luck,
Greg S.
2007-01-09 10:54:55 · answer #3 · answered by Anonymous · 0⤊ 0⤋
That is a good deal. Really it all comes down to how much service you get. You will get excellent service from me. I'll give you a par rate and charge a $3995 flat mortgage broker fee. Plus the lender fee and your escrow and title.
What state are you in? How soon do you need to close?
2007-01-08 14:43:28 · answer #4 · answered by ondreforsure 3 · 0⤊ 0⤋
i have never had to pay a broker
1) i have an excellent ownership record of homes
2) i have excellent credit
3) i have a job
the broker in this instance is paid by the bank, cr.union, etc.for bringing a quality lender..(this also goes to first home owners with a good job, ex.credit , etc)
everything is paid for..appraisals..everything..and sometimes i get cash back..as well
I have only heard that people with a recent bankruptcy..have paid a mortgage broker fee..
my mortgage broker is paid very very well everytime i use him..and last pay check i saw him get was..10k on my loan..
2007-01-08 14:38:57 · answer #5 · answered by m2 5 · 0⤊ 1⤋
some brokers can/will charge on the front, and on the back.
front fees, anywhere from .5% of the loan amount to as high as 2% of the loan amount.
shop around more...you can find a broker who will charge you less.
2007-01-08 14:22:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋
real looking or no longer the broking service is entitled to be paid for doing the artwork. you comprehend think ofyou've got trouble qualifying yet you may do the leg artwork your self. call round and be conscious in the experience that they could settle for 5 yrs of Tax Returns as info of earned income. basically by way of bypass the broking service
2016-12-28 12:03:35 · answer #7 · answered by garraway 3 · 0⤊ 0⤋
shop around at at least 3 places. try coldwell banker at 888 842 2580 no charge to ask.
2007-01-08 14:50:56 · answer #8 · answered by zocko 5 · 0⤊ 0⤋