BiggerPockets

I posted this over in the " Deal Analysis" section and it was suggested I post it here to get more response... anyways

I've found my first rental house to purchase... I went to a mortgage broker that is one of the corporate partners for my local REIA. Since this is my first time, can you look over the attached Good Faith Estimate and see if they are charging any unnecessary items or maybe too much for certain things? I marked out all of the names and addresses.

Thanks!

Scott,
This is a single family home, not a multi-family... the broker told me the appraisal is more for an investor loan. Maybe he is making a few hundred bucks off of that fee as well.

You mentioned 6% broker fees/ysp. I calculated 4%($2500 + $451) which I've learned is very high... how did you get 6%? Is there another commission fee that I missed?

I appreciate your help!

PostPosted: Sun Feb 10, 2008 9:21 pm Post subject:
An appraisal for a SFR should run between 250-300 (no more then 350).

I am a mortgage broker in FL. Single Family Home appraisals usually run between 300-375 in my area. Even with an " Investor" appraisal, which includes a rental market analysis (hence the extra $$$), I agree with Ezloanz that the appraisal is still high.

I also agree that the fees are excessive for the loan amount.

Respectfully,

What I have seen is that some appraisers have lowered their going rates because of decrease in business over the last year or so. The normal rate of $350 drops to $325 or $300 if any reference of a competing appraiser will do it for that amount. They are hungry for business but again depends on the details of the property and amount of work to be done based on a look-up.

I noticed immediately the Calyx Point generated form. Most of these numbers are imported from a boilerplate but all fields are customizable.

This is a $67,500 loan - what are they doing charging you a $2,500 broker fee(line 808)? Also, the Processing fee of $485 on line 810 is to the broker. In other words, the broker is making 4.44% on your loan.

That's rediculous. You aren't paying anything to the lender to buydown the rate otherwise it would be disclosed on the GFE.

I've been doing this for 18 years and there are times where I charge more. Only accept this if you are out of time and absolutely have to close or if by some miracle this is the only broker in the universe (or at least in your phone book) that is capable of getting you this loan.

The rate is competitive for a full-doc, low loan amount AAA (FNMA/FHLMC/FHA/VA) loan. But I suggest you negotiate the fee to at least half. Plenty of brokers, banks and/or lenders will do this loan for you for 1-2 points (1%-2%).

What state are you in? Perhaps I can refer you to somebody.