Frequent Contributor
Sunshine85
Posts: 367
Registered: ‎01-14-2012
Re: Does creditor charge a fee before starting a mortgage application?
[ Edited ]

seigex wrote:

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...


I don't think that's earnest money- if it was, the poster would be paying the money to the title agent or Realtor to hold in escrow.

 

$500 upfront does sound a little strange. Is there a chance that the fee is for the appraisal? If so, it's common for the lender to charge that upfront.