Mortgage Lender Fees are rising due to tighter credit guidelines.
Since 2008, mortgage lending’s credit guidelines have continued to get tighter and tighter. It always seem like there is always some new credit guideline or restriction coming out to write more A grade mortgage loans. The investors in the secondary mortgage market are still very skittish when it comes to credit qualifying for mortgage loan borrowers. This has impacted mortgage lenders across the country because less people fit the box. To compensate for these changes mortgage companies have increased their lender fees for new home loan originations.
Following is list of lender fees consumers should watch out for when seeking a home mortgage loan:
1. Processing fee- this realistically should not be more than $500
2. Lock Fee- Should not be charged at all, usually this feed shows up because the lender is trying to secure the borrowers business and it’s not an ethical way of conducting business.
3. Inflated Appraisal Fee- Lender charges borrower but inflated appraisal fee which pays the lender and pays the appraiser at the expense of the borrower.
4. Lender Fee- These have risen upwards to almost $1600 per loan.
Mortgage lender fees have risen, but you don’t have to pay the higher costs!
That’s right just because lender fees have risen, that doesn’t mean you should have to pay more for your Sonoma County Mortgage Loan. That means you need to make sure you know what all the fees associated with your home loan will be. Be very cautious of a lender that charges you multiple different types of fees. You should also be cautious of any Petaluma Mortgage Lender that charges you a lock-in fee.
Some lenders try to charge a lock fee and it’s really an appraisal fee and then they try to say there is no appraisal fee. Be smart, know an appraisal is usually $400. If you consider me for your home loan I can promise you upfront fees with no hidden charges.
Here is a solution to rising mortgage lender fees.
I have a $1295 lender fee which pays my processor, underwriter, doc drawer and funder as a direct lender. Additionally, our appraisal company charges approximately $375 for home loan appraisals. They do a great job for us and you’ll receive a copy of the appraisal back within five business days.
If you are looking for a home loan for a purchase or a refinance and want to keep your lender fees as low as possible give me a phone call at 707-217-4000. As a local Sonoma County Mortgage Lender, I can offer you the absolute lowest mortgage lender fees for your next mortgage loan.