• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

How your mortgage fees can change

October 20, 2016 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email
How your mortgage fees can change

Getting a mortgage can be a costly endeavor if you don’t plan accordingly. Deadlines, qualifying, and paperwork are some of the things you’re going to be dealing with over the course of your escrow. Here’s what you need to know regarding loan costs…

Fees can change in part for a slew of reasons, but for our purposes here are the main reasons:

Timing is critical-when your lender asks for bank statements, pay stubs or any other form of supporting documentation for your mortgage application, get this documentation in quickly i.e. 24-48 hours. Failure to do so can result in having to take a rate lock extension. An interest rate lock is good for a certain period of time typically for 30 days or in some cases as long as 45 days. The money is set for a specific period of time. Essentially, a rate lock is putting a hold on the money you’re looking to borrow for a certain period of time under certain terms i.e. a certain interest rate under a certain program.

As the market moves the value of this rate lock to the end investor can be more or less valuable at the end of your escrow. For example let’s say you lock in a 30 year fixed rate mortgage at 3.625% at no points on $500,000 loan. At the end of 30 days because of the delay in the process (more on this in a moment) it is determined you’ll need another 10 days to close escrow. Meanwhile, interest rates changed and while you are locked at 3.625, rates are now at 3.875% on a 30 year fixed on that same $500,000 loan. As rates rose since your lock in date the value of your loan is less desirable to the end investor as it would be more financially advantageous for them to lock in a new loan with a higher interest rate. The lender would either re-lock your loan at worst-case market pricing or would allow you to extend your loan driving your loan fees higher.

External delays-external factors can also cause delays in your escrow. These external factors may include other parties not performing such as the seller of the property failing to quickly sign required seller docs or home appraisal delays. These are delays though not your fault can still cause you to have to pay more money on extending your interest rate lock. Best to plan accordingly. This means when buying a house ordering appraisal upfront as soon as possible in order mitigate delays down the line. When refinancing this means ordering the appraisal up front at loan application or planning for a 45 day escrow time frame.

Appraisal Fee Changes-residential real estate appraisers have total and complete authority on the value of your property. Most mortgage companies have a set standard appraisal fee approximately $500. Despite most mortgage companies having a set standard appraisal fee the appraiser has the right to change what they want to charge to perform the appraisal. For example if they had a heavy workload, they require more money to complete the order or deny the order resulting in the lender having to find a new appraiser. If you’re under the gun for an escrow you may have to bite the bullet and pay the additional fee to have the appraisal done quickly or within the time frame stated in your purchase contract.

Miscellaneous items- Other factors that change your loan fees are appraisals not coming in at the desired value changing the loan-to-value on your loan subsequently changing fees and/or the rate you otherwise were expecting based on a different valuation of your home. Additionally, if the property is missing a CO2 detector which in some states is law like California the appraiser must to go back out to the property to sign off on the appraisal resulting in an additional charge.

The best way to mitigate additional fees that can come up in the loan process is clear responsive communication with your lender. It is up to your lender to make sure they are setting right expectations with you by communicating not what you want to hear, but what you need to hear.

Looking to get a mortgage? Get started with a free rate and cost quote now.

 

 

 

 

Related Mortgage Advice from Scott Sheldon

  • refinancing adjustable rate mortgage
    5 Important Things To Consider When Refinancing To A Fixed Rate Mortgage

    If you have an adjustable rate mortgage on your home, here the 5 prudent factors…

  • Best Mortgage Rate Quote Vs. Locked Rate

    Securing a mortgage loan today for a purchase or refinance is looking very attractive with…

  • How Interest Rate Locks Work

    In the mortgage finance world mortgage lenders and mortgage brokers work off interest rates on…

  • 2017 mortgage rate environment
    The 2017 Mortgage Rate Environment

    The mortgage industry has gone through some changes in the last three months. If you…

Filed Under: Loan Programs, Loan Qualifying, Mortgage Shopping, Mortgage Tips & Advice

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window