Please review this GFE for me

[RVD26]

I really need the help of the gurus on here to review this GFE from my mortgage broker.

My wife and I are applying for an FHA loan.

Her midscore is 640, mine is 710.

We are putting $15k down for down payment.

Purchase price of the home is $165,300.

Interest rate on the loan is 5.5%

 

Here it is:

 

Loan Origination Fee: 1% $1503

Appraisal Fee: ($350) - Credit?

Processing Fee: $495

Administration Fee: $795

Application Fee: $250

Lender Fees: $800

 

Closing/Escrow Fee: $300

Document Prep Fee: $150

Title Insurance: $100

 

Recording Fees: $165

Tax certificates: $71.58

State Guaranty Fee: $5

 

Courier & overnight fees: $60

Copies/Fax fee to title co: $32.50

HOA dues/transfer fee: $500

Survey: $375

 

Estimated Closing costs: $5602.08

 

Interest, 15 days: $345.66

Mtg insurance prem: $2630.25

Hazard insurance prem: $1200

Edited June 25, 2009 by RVD26

[jop3]

There are way too many junk fees. I would get a second opinion.

[RVD26]

There are way too many junk fees. I would get a second opinion.

 

What do you consider to be "junk fees"?

I've never done this before.

The broker has been really helpful with us throughout the whole process.

I'm sure I could get a better deal if I shopped around enough, I just want to make sure I'm not getting totally ripped off.

[jop3]

The administration and application fee, for sure.

[RVD26]

The administration and application fee, for sure.

 

What do you think the fee should be, if anything?

[Brian B The Loan Professor]

I agree too many junk fees. 1% origination is fair with processing anything else is junk and can be negotiated away will not be there in most cases if you get a second opinion.

There will be a lender fee but this one seems a little high

 

B

[RVD26]

I agree too many junk fees. 1% origination is fair with processing anything else is junk and can be negotiated away will not be there in most cases if you get a second opinion.

There will be a lender fee but this one seems a little high

 

B

 

Thanks, Brian.

I talked to my LO again and he said the administration fee is standard and cannot be changed.

He will see about lowering the processing fee.

What do you think the fees should be, considering our situation?

PM me, if needed.

[jop3]

The processing fee is right in line, that's not a problem. Most places do not charge an admin fee at all. It's not even that it's high, it's that it's charged at all. The application fee is a junk fee, too, but by itself, it's not that big of deal. It's that those 2 fees total $1000 and they are just profit for the broker. The lender fee might be set by the lender they use, but it's still a little high - I'm thinking 600 would be more in line.

 

I would just get a 2nd opinion, then if you really like this guy, bring the 2nd opinion to him and give him the opportunity to match it.

[BoxCar44]

I really need the help of the gurus on here to review this GFE from my mortgage broker.

My wife and I are applying for an FHA loan.

Her midscore is 640, mine is 710.

We are putting $15k down for down payment.

Purchase price of the home is $165,300.

Interest rate on the loan is 5.5%

 

Here it is:

 

Loan Origination Fee: 1% $1503

Appraisal Fee: ($350) - Credit?(this should show as a credit on your settlement papers, but ask to be sure)

Processing Fee: $495(negotiated this to $300)

Administration Fee: $795(should not pay)

Application Fee: $250(should be appraisal fee, I wouldn't pay this)

Lender Fees: $800(I would ask what this is for, I didn't pay this)

 

Closing/Escrow Fee: $300(this was paid by the seller)

Document Prep Fee: $150(wouldn't pay)

Title Insurance: $100

 

Recording Fees: $165(paid for by sellers)

Tax certificates: $71.58

State Guaranty Fee: $5

 

Courier & overnight fees: $60(paid for by sellers)

Copies/Fax fee to title co: $32.50

HOA dues/transfer fee: $500

Survey: $375(was this required? FHA doesn't require this. I didn't get a survey done)

 

Estimated Closing costs: $5602.08

 

Interest, 15 days: $345.66

Mtg insurance prem: $2630.25

Hazard insurance prem: $1200

 

From a fellow first-time homebuyer, I would also say get a second opinion. I made some comments above, based on my closing. I closed on my home in March (this year). I am not sure of the details for your purchase, but I would also shoot for a lower rate. I got a 5% rate and I only put 3.5% down. My credit score was 632. I got the sellers to pay $5500 in closing costs (FHA actually allows up to 6%), so you also may want to look at that as an option. Hope this helps!

[jop3]

I really need the help of the gurus on here to review this GFE from my mortgage broker.

My wife and I are applying for an FHA loan.

Her midscore is 640, mine is 710.

We are putting $15k down for down payment.

Purchase price of the home is $165,300.

Interest rate on the loan is 5.5%

 

Here it is:

 

Loan Origination Fee: 1% $1503

Appraisal Fee: ($350) - Credit?(this should show as a credit on your settlement papers, but ask to be sure)

Processing Fee: $495(negotiated this to $300)

Administration Fee: $795(should not pay)

Application Fee: $250(should be appraisal fee, I wouldn't pay this)

Lender Fees: $800(I would ask what this is for, I didn't pay this)

 

Closing/Escrow Fee: $300(this was paid by the seller)

Document Prep Fee: $150(wouldn't pay)

Title Insurance: $100

 

Recording Fees: $165(paid for by sellers)

Tax certificates: $71.58

State Guaranty Fee: $5

 

Courier & overnight fees: $60(paid for by sellers)

Copies/Fax fee to title co: $32.50

HOA dues/transfer fee: $500

Survey: $375(was this required? FHA doesn't require this. I didn't get a survey done)

 

Estimated Closing costs: $5602.08

 

Interest, 15 days: $345.66

Mtg insurance prem: $2630.25

Hazard insurance prem: $1200

 

From a fellow first-time homebuyer, I would also say get a second opinion. I made some comments above, based on my closing. I closed on my home in March (this year). I am not sure of the details for your purchase, but I would also shoot for a lower rate. I got a 5% rate and I only put 3.5% down. My credit score was 632. I got the sellers to pay $5500 in closing costs (FHA actually allows up to 6%), so you also may want to look at that as an option. Hope this helps!

 

Rates are not the same as they were in March. The rate with the origination is fair.

 

Also, anything under the Lender Fee, is not going to be negotiable. It's third party costs and depends on the state.

[RVD26]

I really need the help of the gurus on here to review this GFE from my mortgage broker.

My wife and I are applying for an FHA loan.

Her midscore is 640, mine is 710.

We are putting $15k down for down payment.

Purchase price of the home is $165,300.

Interest rate on the loan is 5.5%

 

Here it is:

 

Loan Origination Fee: 1% $1503

Appraisal Fee: ($350) - Credit?(this should show as a credit on your settlement papers, but ask to be sure)

Processing Fee: $495(negotiated this to $300)

Administration Fee: $795(should not pay)

Application Fee: $250(should be appraisal fee, I wouldn't pay this)

Lender Fees: $800(I would ask what this is for, I didn't pay this)

 

Closing/Escrow Fee: $300(this was paid by the seller)

Document Prep Fee: $150(wouldn't pay)

Title Insurance: $100

 

Recording Fees: $165(paid for by sellers)

Tax certificates: $71.58

State Guaranty Fee: $5

 

Courier & overnight fees: $60(paid for by sellers)

Copies/Fax fee to title co: $32.50

HOA dues/transfer fee: $500

Survey: $375(was this required? FHA doesn't require this. I didn't get a survey done)

 

Estimated Closing costs: $5602.08

 

Interest, 15 days: $345.66

Mtg insurance prem: $2630.25

Hazard insurance prem: $1200

 

From a fellow first-time homebuyer, I would also say get a second opinion. I made some comments above, based on my closing. I closed on my home in March (this year). I am not sure of the details for your purchase, but I would also shoot for a lower rate. I got a 5% rate and I only put 3.5% down. My credit score was 632. I got the sellers to pay $5500 in closing costs (FHA actually allows up to 6%), so you also may want to look at that as an option. Hope this helps!

 

The seller is the builder of the home and they have agreed to pay 3% towards closing costs and $1600 (for title?).

I don't know, I guess I just feel stuck right now.

We have to close by the end of July or they will raise the price of the home by $2500.

I am not sure another lender would be able to close by then.

We also have some unique situations (neither one of us has a 2-year work history) and my wife's score was pretty low to begin with.

I have already told the LO to try and lower the overall costs by $1000.

Hopefully he comes down in price a little.

Edited June 26, 2009 by RVD26

[DragonFlyer]

I recommend a second opinion from Brian B the Loan Professor. I just got an application for DH through him (waving to Brian!) and I don't see nearly as many fees on this as you have, and the scores used on this application are lower than yours.

Edited June 26, 2009 by DragonFlyer

[RVD26]

I recommend a second opinion from Brian B the Loan Professor. I just got an application for DH through him (waving to Brian!) and I don't see nearly as many fees on this as you have, and the scores used on this application are lower than yours.

 

I asked Brian already and he told me he would not be able to close by the end of July.

It seems he's a busy man right now

[DragonFlyer]

I recommend a second opinion from Brian B the Loan Professor. I just got an application for DH through him (waving to Brian!) and I don't see nearly as many fees on this as you have, and the scores used on this application are lower than yours.

 

I asked Brian already and he told me he would not be able to close by the end of July.

It seems he's a busy man right now

 

Ah, gotcha. That is a tight deadline and understandable.

[RVD26]

Just got a call from my LO.

He's willing to wave the application fee, but that's about it.

He says the other fees cannot be negotiated.

We're in TX BTW, don't know if that makes a difference with the fees.

Also, the seller is going to pay 3% towards closing costs and $1600 towards (owner's title, I think)

[Brian B The Loan Professor]

The state is not the issue with how much they are willing to take in compensation it is their choice. The fact that your wife's scores are lower may factor into the costs and be why things appear to be high. Anything less than a 620 is going to have additional cost anything less than a 600 will be even higher.

 

Good Luck and hope it goes smooth from here

B

[BoxCar44]

I really need the help of the gurus on here to review this GFE from my mortgage broker.

My wife and I are applying for an FHA loan.

Her midscore is 640, mine is 710.

We are putting $15k down for down payment.

Purchase price of the home is $165,300.

Interest rate on the loan is 5.5%

 

Here it is:

 

Loan Origination Fee: 1% $1503

Appraisal Fee: ($350) - Credit?(this should show as a credit on your settlement papers, but ask to be sure)

Processing Fee: $495(negotiated this to $300)

Administration Fee: $795(should not pay)

Application Fee: $250(should be appraisal fee, I wouldn't pay this)

Lender Fees: $800(I would ask what this is for, I didn't pay this)

 

Closing/Escrow Fee: $300(this was paid by the seller)

Document Prep Fee: $150(wouldn't pay)

Title Insurance: $100

 

Recording Fees: $165(paid for by sellers)

Tax certificates: $71.58

State Guaranty Fee: $5

 

Courier & overnight fees: $60(paid for by sellers)

Copies/Fax fee to title co: $32.50

HOA dues/transfer fee: $500

Survey: $375(was this required? FHA doesn't require this. I didn't get a survey done)

 

Estimated Closing costs: $5602.08

 

Interest, 15 days: $345.66

Mtg insurance prem: $2630.25

Hazard insurance prem: $1200

 

From a fellow first-time homebuyer, I would also say get a second opinion. I made some comments above, based on my closing. I closed on my home in March (this year). I am not sure of the details for your purchase, but I would also shoot for a lower rate. I got a 5% rate and I only put 3.5% down. My credit score was 632. I got the sellers to pay $5500 in closing costs (FHA actually allows up to 6%), so you also may want to look at that as an option. Hope this helps!

 

Rates are not the same as they were in March. The rate with the origination is fair.

 

Also, anything under the Lender Fee, is not going to be negotiable. It's third party costs and depends on the state.

 

Interesting, I didn't know they had changed so significantly. A friend of mine just closed not too long ago and she was locked in at 4.875. The thing I am very curious about is the Lender Fee. There isn't a line item on the HUD-1 settlement form (which I thought was uniform), which would lead me to believe that its not a normal or "required" fee. Again, just basing it off of my recent closing with an FHA loan. But I was told that everything was negotiable. I even got them to lower the origination fee :-)

 

My favorite saying "you have not because you ask not"!!

[jop3]

Yes, they have gone up quite a bit since March. Lender fee is not something you'll see on every GFE. It's something you tend to see on broker GFE's since they are passing on the fee their lenders charge to do the loan. It's not a fee that goes to the broker.

 

I think you misunderstood my statement though, I meant that any fees that appear underneath the Lender Fee are not negotiable, meaning title fees - closing/escrow and below. Those are third party charges that are not set by the loan officer.

[BoxCar44]

Yes, they have gone up quite a bit since March. Lender fee is not something you'll see on every GFE. It's something you tend to see on broker GFE's since they are passing on the fee their lenders charge to do the loan. It's not a fee that goes to the broker.

 

I think you misunderstood my statement though, I meant that any fees that appear underneath the Lender Fee are not negotiable, meaning title fees - closing/escrow and below. Those are third party charges that are not set by the loan officer.

 

Oh, ok. I gotcha. Yeah, I am noticing the fees did go up quite a bit. I was actually pretty lucky that I was able to lock in my rate, considering it took 3 months to close. I didn't know they charged different fees. Is there any benefit to using a broker, since they have additional fees?

[Brian B The Loan Professor]

There are some fees on a brokers GFE you will NOT see on a retail banks

The reason is they are not required to disclose them all

The biggest being yield spread

You may be able to have less fees through a bank but they usually make up for it in rate

Brokers can do the same but usually are trained to try and get you the best rate available and pass on some of the fees

Banks and brokers do not call everything the same thing which adds to the confusion

 

The biggest difference I have seen personally is that when I have used retail banks (not all brokers are allowed to do their own loans)

I usually deal with a lot of different people - they do not always know the status and it was always 3 steps forward two steps back

very frustrating for me especially since I knew what should be happening

If you get one person that knows what they are doing it shouldnt matter if they are banker or broker it should be a seamless process

That said there will always be tough deals and no one is perfect

 

B

[RVD26]

Update:

 

We decided to use the mortgage company associated with our builder to speed things up and to receive 3% towards closing costs.

Here is their GFE:

 

Date: 7/2/2009

Loan Type: FHA

Rate: 5.5%

Sales Price: $165,387

Loan amount: $155, 562

Loan to value: 92.44%

 

Loan origination/lender fee: $1528.87

Loan discount/lender fee: $388.91

Lender's inspection fee: $95

Settlement/Closing fee: $400

Document preparation: $150

Title insurance: $300

Recording fees: $130

Survey fee: $400

Other/Title Co Messenger fee: $150

 

Total Estimated closing costs: $3567.78

 

Please let me know how this looks

Thanks

Edited July 3, 2009 by RVD26

[jop3]

That's quite a bit lower than your intial quote.

[RVD26]

That's quite a bit lower than your intial quote.

 

Yes, I know...lol

The sellers (builders) are covering a lot of the fees that they would normally charge.

So everything else looks good?

We're going to put down $20k instead of $15k, so the fees will actually be a little lower.