All Forum Posts by: Torianne Baley

There are plenty of use cases where lenders require upfront fees. However you're looking at a 5% rate for an investment property? Investment property financing is all we do and we beat most peoples rates and we are not even close to 5.0%. 

 This is my personal opinion but nothing he said was negative. There are opinions on these forums and people have a right to them and people may take it as criticism. real estate is not a business where everyone is friendly and just as you have shown from whoever was trying to scam you and has nothing to do with doing your best, its about being educated before moving forward. 

His comment was to get a better process and do not rely on others. They are 100% correct.

The downside sometimes to forums is people have a superman complex and get the impression real estate is easy as they think everyone is doing it and just jump in without the knowledge or expertise. That never ends well.

I think you meant to type was… 

Thanks @Jeff S.for your free professional advice. You’re right. I should have figured out it was a scam because of every reason you listed. Thanks for saving me from getting scammed. I love this site and all the professionals that give away free advice with no strings attached. You’re part of what makes BP great. 

I think that’s what you meant to type. Maybe I’m wrong and you just don’t appreciate your questions getting answered quickly for free by professionals. But if you’re not going to show appreciation there’s certainly no reason to shoot the messenger. 

Now that’s he’s saved you $3,000 and told you how to avoid it happening in the future. You can move forward. Good luck. 

Definitely do not pay that upfront fee. Going private money will already cost you more $$ in closing costs, points, etc - but they should ONLY collect $$ if the loan closes. THere should not be any upfront charges where they make any money if you don't close. Scumbag company.

Sure thing :)

I took a quick look, @Torianne Baley:

1) With short-term treasuries now paying around 4.5%, guaranteed by the USG, why would anyone loan to you at 5%? HML rates are currently around 11% plus a few points. You can stop right there. On its face, this is a scam. Stop reading if you want.

2) I couldn’t guess what “There is a 6 months of grace period before interest payment begins” means.

3) They call their $3555 charge a “Loan Fee,” stated a few lines up as 2%. 2% of $235,000 (loan amount) is $4470.

4) Do you seriously believe the loan fee, “… IS 100% REFUNDABLE IF THERE IS ANY DEFAULT FROM THEPART OF THE LENDER OR IF THE BORROWER CHOOSES TO TERMINATE THE LOAN.”

5) It’s okay to pay an appraiser directly. Beyond that, sending upfront fees to a lender is not okay. Lenders get paid at closing.

Consider developing a better process to find and vet your lenders, Torianne. No one here will, or should, do your work.

No need to be paying an upfront fee to a lender.

As a lender it is our job to perform or we do not get paid.

Some try to charge an up front fee. We only charge third-party fees like the appraisal and the borrower pays the vendor directly. We don't get paid unless the loan closes.I would be careful with a lender that charges anything but third-party fees.