I am a first time home buyer and I am working with a loan officer. The loan officer has given me two good-faith estimates of closing cost and fees and both list the application fee as $0.00. All of the sudden there is an application fee of 450.00 which he never disclosed to me before. Should I pay it? I heard that banks are notorious for adding on fee’s as the process goes on but is this legitimate? Should I get a new loan officer if he doesn’t give me all the fee’s and qoutes up front?
Do you really want to work with an institution that charges an application fee or trains their loan officers to omit fees on their good faith estimates? I never charge app fees or try to hide charges.
First time home buyer-mortgage application fee?
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I’d shop around for a different loan offider/broker. If their GFE form includes a blank to list this application fee, it should be filled in with $450.00. If they ‘missed’ this important cost, what else did they ‘miss’ on their GFE. They sound either incompetent or downright crooked.
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Do you really want to work with an institution that charges an application fee or trains their loan officers to omit fees on their good faith estimates? I never charge app fees or try to hide charges.
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I’m a mortgage banker/broker
all mortgage loans have application fees you usually don;t pay that until closing
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The question is not the application fee, but when the application fee is paid.
Most banks/lenders and other mortgage lender charge some type of application fee. This fee should be paid at the close of the mortgage loan not at the beginning.
If the fee is rolled into the mortgage loan or paid at the closing of the escrow, you might not have a problem.
Some loan officers as we all do make mistakes and might leave out a fee that is normally charged, so don’t get all out of sorts, simply refuse to pay up front application fees. If this is the case run as fast as you can to another lender.
Mortgage professionals earn commissions by closing mortgage loans for their clients not by collecting up front fees.
In addition to the Good Faith Estimate (GFE) you might also ask this loan officer about a Truth In Lending (TIL)
I hope this has been of some use to you, good luck.
"FIGHT ON"
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When you say loan officer, do you mean mortgage broker?
I work at a very large lending bank, and our application fee is $400. And it’s a fee, not applied to your closing costs.
Call a few lenders for yourself and find out what they charge.
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Actually you should have not gotten two Estimated HUD-1′s with different closing costs and fees. Unless you are near the end of your transaction, and although fees and closing costs do change all fees must be explained and should not have any misc. fees or items with no dollar amount.
The loan officer is not the one who figures those fees and presents the Estimated HUD-1 to the buyer. Only an Escrow Officer or Title Officer so I would first question who you are actually dealing with and if they are a third party to the transaction.
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16 yrs real estate
Title & Escrow Officer
Transaction Coordinator
Loan Officer
What you need to do is confront him about his fee. Make him explain why it wasn’t on any of the other two Good Faiths he gave you. Most lenders do charge an application fee, or what they call an origination fee. Think about your conversations with him and see if you can remember him talking about it. Be certain before you tell him that the FTC is investing these types of situations and taking them very seriously.
If he hesitates, I’d walk away. And be sure to tell all your family and friends. We need to get rid of these types of loan officers.
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