Re: Does creditor charge a fee before starting a mortgage application?
This picks up from an earlier thread...Yes, The $500 is usually to protect the lender for appraisal cost and other fees....To not charge those to a borrower up front is almost unheard of now a days. Does anyone here know of any other business that puts themselves on the line like that? My company did up until last year and we were constantly getting burned from customers jumping ship. A few years ago you wern't at the same risk as a lender because appraisals were transferable. Today mostly they are not from lender to lender.
Thanks for the information. It's easy to understand from the business point of view. I'll search around and see if I can get a better deal.