How To Avoid Loan Fees When Buying

Be cautious and review all loan disclosures so your purchase can be seamless and uneventful.  Here is my list of cautions to look for.

When presented with the "good faith estimate" of costs review it thoroughly for costs of services supplied by lenders.  Always ask which fees are refundable or can be credited to other costs at closing.

Be certain your loan application fee is refundable, as well as any other upfront fee.  Such fees are often not refundable if the transaction is terminated before closing, but it's best to ask.

You may be able to avoid an application fee by seeking out a lender with low overhead costs.  Such lenders do a high volume of home loans.  Be aware, however, that lenders may recoup waived application fees through higher points which increases the amount of interest overall that is charged on your loan.

Appraisal costs may be avoided by using lenders that have appraisers on retainer.  This service should be considered a part of regular customer service.

If your comparison shopping  turns up fees that vary greatly between lenders, you should call a nationwide mortgage lending institution that may be able to explain why fees are higher or classified differently for your area.

When buying in a homeowner association, lenders require documentation providing information about the association and what fees are collected as a part of the association.  Buyers can do their own homework finding the necessary form and duplicating it for the lender which can avoid the fees charged by lenders to get this information.

Watch out for lenders offering zero point financing.  There is no free lunch.  They will compensate by adjusting their yields to offset offering lower rates.  For example, a 30 year, fixed rate mortgage at 8.25% at 1.5 points or one at 8.75% at zero points is pretty much the same thing.

Call or email me today to answer your finance questions and for my list of qualified, dependable mortgage professionals that I can recommend at no obligation.  Tom at 770-312-6729 or email tom@ganorthrealty.com.

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