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

namvet wrote:

Make sure you get a good faith estimate before you pay any money to the lender.  The $500 charge sounds like a fee for the appraisal and credit report/processing fee.  Some lenders charge that fee at application.  Shop around and you will find many lenders/brokers that don't  charge upfront fees.  Ask for a good faith estimate of closing costs.  This estimate will give you a breakdown of all the estimated costs involved.  



Get a GFE so that you know exactly what this fee is for. If the lender isn't willing to provide a GFE prior to you paying $500, I'd  suggest you move on, and find another lender.