Monday, December 12, 2011

What Mortgage Broker Fees Are Legitimate

Mortgage broker fees 

Mortgage brokers are usually paid their commission and fees at closing.

Such mortgage broker commissions are based upon their being able to find the buyer a loan, process the loan application, serve as liaison between you and the lender, and to safely handle the mortgage from application through the closing.   A mortgage broker's commission is generally called an "origination fee."  

Mortgage broker processing staff and other expenses are also paid at closing and can have various labels, such as processing fee, document fee, recording fee and others.  

Legitimate fees charged by mortgage brokers to cover their expenses can include:

  • Appraisal fee - Most lenders collect this fee in advance, after you are approved for a loan and get into contract on a house (before your transaction closes).
  • Application fee - Some  lenders charge an application fee, and others ask applicants to pay advance credit report fees. 
  • Rate-lock extension fee - Some mortgage brokers charge such fees of one percent of loan amount if after application the interest rate needs to be guaranteed for a long period of time.   
  • Other miscellaneous fees - to be clarified with specifics in the HUD estimated closing statement.

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Source of some information here is an article by Tara-Nicholle Nelson at ReThinkRealEstate.com.  This is not the providing of legal or tax services.  If you have questions about any proposed mortgage brokers commission and fees, you should consult with a real estate attorney in your area.

Please contact us about listing and sale of Orange County CA homes and real estate. ~ Professional REALTOR® agent representation and help for property owners, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA

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