Re: Does creditor charge a fee before starting a mortgage applicatio
[ Edited ]
11-14-2012 05:08 PM - edited 11-14-2012 05:08 PM
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?
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.