Upfront? I haven't came across that yet.
Upfront fees prior to application are a red flag for an illegitimate lender, or one that doesn't have your best intentions in mind. Points prior to closing are typically another red flag you should avoid. The only fees that should ever appear will be after application and evaluation of the property for BPO/Appraisal and associated fees, and then at closing the remainder of fees such as points, processing, 3rd party, etc. This can vary a bit but it's a good rule to stay safe when you search for a lender.
There can typically be an application fee and some lenders actually do charge a due diligence fee which will cover the inspection appraisal and legal fees
Points should always be taken directly out of the loan
Just the cost of an appraisal. Maybe credit check for $30. That's all you should pay. Anything else should tell you to walk away.
Be careful of any lender asking upfront fees besides an appraisal. Most legitimate lenders would not ask for any upfront fees.
Best of luck in all your endeavors
If they ask for up front fees like the other folks said, just run the other way. There are plenty of lenders who don't.
The only thing to pay for up front are third party fees like appraisal or credit report.
@Felix Rivera That's always the first sign of a scam. Like the others have mentioned, unless it will be used for an appraisal, never waste your time with anyone requesting upfront fees.
They're simply attempting to take your hard earned cash and move on to the next victim. Also, be aware of people offering hard or private money below 7% interest, unless it's a long-term rental loan.
Never pay any upfront fee other than credit check and appraisal. Don't get fooled by their super lower rate, because they never will deliver.
There should be a list on here of legitimate hard money lenders
ok i just searched and found a list of hard money lenders on here