Question: What type of fees are associated with a home loan?
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Answer #1:
I went thru this just recently.I managed to get a 4.5% FHA 30yr fixed loan- i got it in January, now i believe the rates have moved closer to 5%.
I used 2 different lenders and then went with the one that offered $505 back in lender fees. Go into a situation prequalified cause it takes some of the pressure when you're bidding on a house.
I made my loan officer go through almost line by line over the loan docs before i would sign anything, when you decide on one yours should as well.
You should get a worksheet which shows- your lender's commission, your interest rate, if you're paying for points, home appraisal, (home inspection and earnest deposit and lender fees come directly out of the buyer's pocket)
There are more fees associated with closing costs you need to be prepared for as well- taxes, courier charges, title company, recording fees, and down payment.
here are some sites that helped me:
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Answer #2:
$1,000 loan origination fee$50 credit report
$200 underwriting fee
$200 administrative fee
$20 recording fee
$400 lenders title insurance policy
$50 8.1 Title policy endorsement
If you accept a higher interest rate, all the above fees disappear.
If you choose a lower rate, all the fees increase.
The only way you can see if you are being cheated is to ask the title insurance person , "Do these seem high to you?". She is not supposed to give you advice but she won't want to see you get cheated..
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