Mortgage Loans

[slappymancuso]

The realtor fees part makes sense to me anyway.  I think the selling realtor is going to end up with more.  She was our realtor until we decided on a property that she was listing.  Conflict of interest and all.

Would you mind breaking down your end of it for me?  Now, for example, we are looking at a purchase price of $228k.  The loan is more like $232k because 2% of the purchase price has to fund back into USDA to keep the program going.  The seller is covering $6500 in closing costs from the $228k agreed amount, so they're really getting $221.5k.  WIth your situation, where would that 8k come from?  Are you including lender kickbacks which would come to you for bringing them the business?

This stuff is fascinating to me.

For what it's worth, we were locked into a rate of 3.25% in December.  I should've asked specifically about YSP.  Now it seems a moot point, as I certainly won't be making any changes.  I'd just like to get a clearer understanding ahead of closing.  As always, thanks for your input.

[JM-AM]

No kickbacks..

I get a minimum of 4% of the total amount. So 4K on every 100K. In your loan of 228K = 9120

Then depends what I credit back or dont credit back... But in your situation I would have credited back your Origination Charge of I forget think was 900 something.

So just over 8K I would have made.

[slappymancuso]

Okay, now I get it.  I was thinking inside the box that your fees would end up coming out of the closing costs somehow.  I couldn't figure out where the 8k was coming from.

[JM-AM]

It just gives you an idea of how much Banks are actually making, since they are the ones paying me, well unless I use my own Branch then Im paying myself. But like any other Bank we have our overlay requirements and sometimes have to pass the loan through a different Lender.

[slappymancuso]

Well, that certainly makes me feel less bad for the LO.  lol.  Great fellow and all, but truth be told we didn't shop around too hard.  I got in touch with two LO's to start.  One played phone tag with me for about a day, and then she quit trying to get in touch with me.  The guy I went with offered what seemed to be a very competitive rate and was extremely responsive.

When we hit a couple snags it became more difficult to get anything out of him.  I got the impression he was just busy with deals that were actually progressing whereas we were stalled for awhile.  It got bad over Christmas when we couldn't get a simple yes or no answer as to whether or not our UW would be willing to accept a stamped item from our local IRS office.  I wasn't privy to everything that went on, but I was told that our former realtor told him we were about to pull out of the deal and go with another lender.  We were pretty close, as it felt like nothing happened for a month. 

Fortunately everything worked out.  We really do feel they went the extra mile for us.  That they're not supposed to accept gifts is news to me, but it's understandable.  I think an anonymous basket would be fine.  We'll just write a nice card or something to give them personally.

[JM-AM]

All that matters in the end is you are happy.

Even if at times you felt a little uncomfortable.

[MovingForward_2012]

+1

[Catacam]

I had a pretty complicated file, so I was more then happy to send a token of my appreciation. My LO and Processor where in a city 400 miles away, so I bought them lunch at their favorite deli over the phone. My broker was a dear friend of mine, so we went out and had drinks... Many drinks!

My team went above and beyond, and now I am in my wonderful home! I am eternally grateful!

Oh and ironically, our Realtor and Broker gave us gifts at closing. Flowers and balloons and a $100 gift card to Lowes.

[slappymancuso]

Thanks for weighing in, Catacam.  I would really like to do something like buying them lunch, but it would be difficult to get that information without being transparent.  I guess I could ask his assistant.

I have heard that gifts from the buyer's realtor are pretty common.  Definitely a nice touch.  I am sure you've been able to put a Lowe's card to use!

All in all, I agree with JM-AM in that I have already given the realtor who has worked so hard for us a couple referrals.  I will do the same for the LO.  Our situation is like yours though in that I feel they deserve something more tangible.

[webhopper]

In my state, realtors can and do represent both the buyer and the seller on the same transaction.. As long as the realtor isn't sharing inappropriate information with either party, its fine, they have an ethics code they must follow or they can get into hot water.

My realtor did a great job, I didn't get her a gift, but I sent her a photo of my husband and my daughter processing a deer in the kitchn... she loved it and obviously the house is perfect for us, which made her happy. I've also sent her referrels... and I've used her twice so far.  The fact that I came back and purchased another 175k home using her was a gift in and of itself.