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  1. #1
    Join Date
    Sep 2006
    Posts
    338

    Home loan fees are crazy

    I went to a home loan specialist and can get a rate of 5.75% but the closing cost etc is over $4,000 for a 130,000 loan makes me wonder if they are any good.

    I go to bankrate.com and they have loans with under $1,000 for closing cost yes the apr is a little more but not a lot.

  2. #2
    Join Date
    Nov 2003
    Location
    Newport Beach, CA
    Posts
    2,920
    take 'a little more' and multiply it by 460 payments and it's not so little anymore.
    Show your reciprocal links on your website. eReferrer

  3. #3
    I worked with some guys from online loan @ http://www.loancentralstation.net . They saved me a lot of money.

  4. #4
    Join Date
    Mar 2005
    Location
    Brighton, MI
    Posts
    1,582
    keep in mind a good amount of closing costs are pro-rated taxes and cannot be negotiated with any loan processor

    the loan origination fee is what you should look for. That amount generally goes to the loan officer and their office. But that is how they get paid. The reason you generally get a lower rate with a real loan officer is that they watch the market more closely and lock you into a rate when it is the best. IF you are working with someone who is getting paid peanuts then expect mediocre interest rates.

    Long term lower interest rates are far better than saving a couple hundred bucks initially.

    If you think you can just refinance later then be prepared, you have to pay closing costs again

  5. #5
    Join Date
    Mar 2002
    Location
    Philadelphia, PA
    Posts
    2,508
    Try one of those websites i.e eloan.com or the one where banks compete for your business.

    I forget!
    Linux junkie | steward.io

  6. #6
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    Usually if you have a good rapport with the bank it can be a little easier. At least that is what we are seeing with the people that are bidding on the house in Los Angeles.

  7. #7
    Join Date
    Jan 2002
    Location
    Boston
    Posts
    5,010
    Shop around, I found that all the e-loan, lending tree and other big name places you see advertised on TV have high costs. Some has high at $7500 on a loan close to what you are looking at.

    I ended up going with Wells Fargo, overall they were the cheapest I could find of 5-6 places I tried so you may want to check them out.

  8. #8
    Join Date
    Sep 2006
    Posts
    338
    I've been looking at houses for over a year now trying to decide what to get and what i can afford it gets old almsot every saturday we go looking for houses and loan rates etc

    I've been told to see how much money we can get approved for and buy a house with it.

    I've had the sales people want me to make a quick decision.

    Them i stay away from. I wasn't born in the dark! lol

    The loan specialist i have been talking to is really nice the loan estimate she gave me has

    a loan orgination fee of 1%
    and a loan discont fee of 1%

    so if i get a loan for $106,000 from her the fees are $2,120 plus the credit report fees etc does that sound high?

    I can get a loan with NO closing cost or fees but the apr is 6 and a half

  9. #9
    Join Date
    May 2004
    Posts
    1,663
    Keep in mind that the people who close your loan, both the loan officer and processor each get their fees either out of your APR or closing cost. 5.75% is a great rate right now, so it is no wonder the closing cost is higher.

    If you do start working with some company, make sure they give you the Truth-in-Lending sheet up-front, you can use that to shop around and they are suppose to, by law, give it to you early to get your signature. But many loan officers wait until closing time to get the signature just for that reason.

    By the way, what range is your credit rating in? A lot of companies will tell you they can do one thing and when it comes to it, you'll get a higher rate (with a: oh, well come on, we've spent so much time on this loan, do you really want to start all over again).

    PS: All loan officers are nice, until you hang up the phone or leave the office And what do you mean by "her fees" exactly, the closing cost? And as a by the way, the loan origination fee doesn't entirely go to the loan officer, and the loan officers will get part of their money from other fees. You're at somewhat a disavdantage in picking and choosing because the value of your home is fairly low, and what the commission loan officers get is proportional to that. And final thing, make sure when you shop around that you don't pull your credit score too much, if one company pulled it (recently), then you can name it to others. Not only does it cost money, pulling the credit report lowers your score.
    Last edited by Lev; 12-29-2006 at 09:27 PM.

  10. #10
    Join Date
    Mar 2005
    Location
    Brighton, MI
    Posts
    1,582
    that sounds like a reasonable rate especially if she is friendly and is willing to work on your side to get you a great rate.

    The first step to buying a home is to find out how much you can get approved for. Get what is called a commitment letter, instead of the standard pre qualification - this is essentially a real loan, you just need a house to apply it to. This will give you a strong negotiating point and also you will know exactly what the mortgage co will lend you. Takes all the guesswork out.

    IF you happen to find your perfect home and are ready to write an offer it really helps to get that commitment letter instead of something wrote 'on a napkin' saying that you are ok to buy a home (pre qual letter). This is a powerful tool and it makes you a strong buyer. Pre qualifications are not the best thing to go the table with

    When it comes to finding a home, if you are serious, it should take you no more than 3-5 good homes to find what you are looking for. It may sound fast but it will take a lot of the legwork out of looking. The internet and virtual tours are your friend.

    work with a realtor who is willing to sit down and go over what you are looking for in a home and what to expect in the current market within your area. If you get a realtor who is all fired up and ready to go showing homes without talking to you and making sure you are in a good position and prepared for what the market has to offer. Walk away.

  11. #11
    Join Date
    May 2004
    Posts
    1,663
    Forgot to ask, is this fixed and if so, for how long?

  12. #12
    Join Date
    Sep 2006
    Posts
    338
    5.75 fixed for 30 years.

    btw its a double wide not a house. My wife and i are considered low income. We looked at the low income loans and they where a joke they ended up costing you more.

    Here where we live if you and your wife make less than 63,000 a year together you are low income.
    Last edited by CPUNut; 12-29-2006 at 10:35 PM.

  13. #13
    Join Date
    Mar 2002
    Posts
    272
    See if the seller is willing to pay some or all of the closing costs, I bought a home last year and reqested the owner pay up to 2k in closing costs, they paid $2,000.00 I paid $900.00.
    Why, Im afraid I cant explain myself, sir, because Im not myself, you know... - Lewis Carroll

  14. #14
    Join Date
    Jun 2003
    Location
    Oklahoma City, OK
    Posts
    2,112
    You should be able to buy a house with know closing cost make the seller pay them if they want to sell. You shouldn’t even have to pay for any other fees make the seller pay them remember they want to sell the house so make them pay.

  15. #15
    Join Date
    Aug 2005
    Posts
    543
    Mates, should go with floating rate of interest or fixed, what you suggest?

  16. #16
    Join Date
    May 2002
    Location
    Sunny California
    Posts
    1,679
    Quote Originally Posted by infinite_in
    Mates, should go with floating rate of interest or fixed, what you suggest?
    Interest rates are going up. You want a fixed-rate loan. If you can't qualify for a fixed rate, don't buy.

    I recommend everyone here read both http://thehousingbubbleblog.com/ and http://globaleconomicanalysis.blogspot.com before you buy. Better yet, put them in your RSS feed reader or subscribe to email updates and read them every day.

    Prices in most of the U.S. will come down over the next 4-5 years; don't be in a rush to buy. Take your time and make sure you get a good deal (you should be able to get the seller to give at least 10% off their asking price in this market, and even then, you may be better off waiting.)
    Erica Douglass, Founder, Simpli Hosting, Inc.
    I founded Simpli Hosting, and sold it in 2007 to Silicon Valley Web Hosting after over 6 years in the business.
    Now I'm blogging at erica.biz!

  17. #17
    Join Date
    Aug 2003
    Location
    Twin Cities Area
    Posts
    5,651
    Quote Originally Posted by Lev
    Keep in mind that the people who close your loan, both the loan officer and processor each get their fees either out of your APR or closing cost. 5.75% is a great rate right now, so it is no wonder the closing cost is higher.

    If you do start working with some company, make sure they give you the Truth-in-Lending sheet up-front, you can use that to shop around and they are suppose to, by law, give it to you early to get your signature. But many loan officers wait until closing time to get the signature just for that reason.

    .
    what he said.

    but the truth in lending statement HONESTLY doesnt mean squat at all! it is a sham as we have found out TWICE in the past month. see, there is a little disclaimer on that document that says everything can change and those are just "estimates". we are going to close next week and now are closing costs are 6% of the price when it should only be 3% max.

    dont forget, most of the drama happens AT the closing table, so youre not even safe until the fat lady sings.

    DO NOT BE AFRAID TO WALK AWAY AND START OVER. if they think you are desperate, theyll feed on you like sharks to blood.

    and dont forget RESPA

    http://www.hud.gov/offices/hsg/sfh/res/respamor.cfm

    http://www.hud.gov/offices/hsg/sfh/res/sfhrestc.cfm

    http://www.hud.gov/offices/hsg/sfh/res/sc3secta.cfm
    Last edited by Project X; 12-31-2006 at 10:49 AM.
    if you haven't considered chapter 7 bankruptcy, maybe you should.
    eliminate your debt, keep the property you want, most people qualify.
    contrary to popular belief - no attorney is necessary!

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