Frequent Contributor
seigex
Posts: 425
Registered: ‎05-16-2012
Re: Does creditor charge a fee before starting a mortgage application?

haoniukun wrote:

Hi,

I asked for information about mortgage application from a local credit union.

They told me that they would charge $500 in advance to start the application.

The $500 would be given back to me as part of the closing fee in the end.

They didn't say that the fee was refundable.

I wonder if any other creditors do the same.

If not, can I negotiate to avoid the fee in advance and pay the closing fee?

 

Thanks


sounds to me like earnest money.. I put up 1% ($1650) when I applied as earnest money...

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