Re: Does creditor charge a fee before starting a mortgage applicatio
[ Edited ]
11-14-2012 05:40 PM - edited 11-14-2012 05:40 PM
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.