what questions to ask mortgages brokers/Lenders?

Question

I have decided to apply for a FHA 203 (K)home loan with a company outside of my home state.

Are there fee's associated with dealing with companies outside of my home state?

What fee's can I expect to be charged for refinancing my home?



What should I look out for ?

I have spoken with the company and have ask the same questions. I just want to get some opinions before I move forward with this

Any advice would be greatly appreciated

Thank you

Will I have to pay for another appraisal. I have rec'd an appraisal less than 2 wks ago from a different loan company that I am going to have to pay for ?

Answer 1

My advice is that you can probably get the same loan and same deal locally. Then if there is a difficulty it is easier to drive down there and meet face to face, pointing at the same paper, and work things out.

I have had several problems where out of town loan officers have avoided emails and phone calls and left me wondering what the heck is going on.

Buying a house is stressful enough without the loan process being a huge unknown.

I always suggest you ask several friends that have bought houses recently who they used and if they were happy. I suggest you pick one of those.

Answer 2

When it comes to FHA loans, the fees are pretty fair. FHA only allows 1% orgination fee to be charged. They also allow for (around about) $350 processing fee to be charged by the broker/lender. Everything else is standard in the transaction for cost (escrows, per diem, etc).

If you've had an appraisal done previously if the appraiser plays by the books, you will legally have to pay for another one. Some appraisers will charge $50-100 for a name change but it really depends on the relationship of the previous company and the appraiser (if they're thick as theives it may be better to get a different appraiser).

I disagree somewhat with the other two posters in regards to sticking local. Technology has allowed us to seek the best of the best outside of our local pond. It has made it easier for us to communicate (look at this website here) and seek information and get educated. Don't let an old way of thinking (stay in the pond, meet face to face) stop you from getting what could be a very good deal. This is the wave of the future. Ride it.

Answer 3

I agree with Glenn, a local loan officer, especially for this type of project, is much more desirable. FHA 203K is available from most lenders and many brokers. You should have a wide local selection of entities to choose from.

Ask each loan officer you interview to supply you with a Good Faith Estimate of Closing Costs and a Feferal Truth In Lending Disclosure. Run, don't walk, away from anyone who is hesitant to do so.

The Good Faith Estimate will detail individual costs so that you may compare what you are being charged and the Truth In Lending Disclosure will allow you to compare the cost of the loan by comparing the Annual Percentae Rates quoted. The closer the APR is to the interest rate you are being quoted, the less expensive the financing being offered.

If the previous appraisal was prepared for an FHA loan, you can request the case number be assigned to your new lender and then they can use the appraisal.

Good luck!

Answer 4

Go to www.hud.gov, then type in 203k in search. The first one that comes up explains all the costs. The origination fee can be 1.25 not 1 as outlined above. There are other costs involved that are not in "regular" loans. I think this will help explain it.

CA lender

Answer 5

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