Need Mortgage Advice

5 Replies

@Trevor Scheiderer

Thanks. There seem to be a lot of fees on this $48,750, and I dont know which ones I can negotiate or whether any of them sound bogus:

Total Loan Costs ($4077):

% of Loan Amount (Points)
Admin Fee: 150
Loan Origination Fee: 700
Processing Fee 575
Underwriting Fee $795

Appraisal Fee $550
Credit Report $50
Electronic Income Check fee: $20
Flood Certification: $12
Mortgage Elec Reg Sys Fee: $12
Tax Service Fee: $90

Title - Attorney Fees: 795
Title - Closing Protection Letter Fee $45
Title - Lender's Title Insurance $133
Title - Title Examination Fee $150

Other Costs ($2236): 

Recording Fees and Other Taxes: $90

Transfer Taxes: $213

Prepaids: $661 (Homeowners Insurance (1 year) and Prepaid Interest)

Initial Escrow Payment at Closing: $800 (Homeowners Insurance per month for 2 months) + Property Taxes $100 per month for 7 months

Owner's Title Insurance: $472

Hey @Glenn Martin ! The loan fees look a bit high, but your other costs look fine since most of them are due to escrow and property tax. I would recommend going to the bank and seeing if they can do something with the processing or origination fees. The worst thing they can do is say no, but at least you asked. Other than that, if the deal is good enough the opening costs shouldn't make or break the deal anyway. I would worry more about rehab costs (if any) and seeing what you can do about the rental income. Good luck and happy investing!

Glenn -  several  questions to ask?   is this an owner occupied or investment loan ?   value of property ?  type of loan you are getting ?   interest rate tied to this $700 orig fee ?    your credit score ?    ( all these items  affect  pricing ) ......I would ask if these  can be reduced / removed 

Admin Fee: 150
Processing Fee 575
Underwriting Fee $795

you also might ask your loan officer if you can increase the rate in order to  get a  lender credit towards soem or all of these costs 

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