Re: Does creditor charge a fee before starting a mortgage applicatio
11-14-2012 05:36 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.
I'm not sure. The banker introduced the mortgage to me showed me a list of fee included in the closing fee. The appraisal was part of it. And the $500 is part of the closing fee. But the banker didn't specifically saying that the $500 was part of the appraisal fee.