topic Re: Application fee with multiple applications? in Mortgage Loans

Application fee with multiple applications?

Jazzzy — Tue, 24 Nov 2015 12:38:30 GMT

We are planning on applying at 3 places for our refinance. Does that mean we pay 3 different nonrefundable application fees? In our area, it's about $450.

Ours is a large loan ($350,000) so even a small variance in interest rate will be worth the money....but I wondered what people usually do out there?

Re: Application fee with multiple applications?

Anonymous — Tue, 24 Nov 2015 23:55:04 GMT

Are you talking about a pre-approval/rate quote or an actual loan application? The only fee that should be collected at time of application is the appraisal fee, and the rest of the fees are collected at close of escrow. At least that's how most lenders go about it in my area.

Re: Application fee with multiple applications?

Jazzzy — Wed, 25 Nov 2015 01:42:39 GMT

How do we know for sure what the rate and costs will be if we don't make an official application? We assumed they couldn't quote actual terms until they saw our scores, income, etc. That's why we thought we needed to actually apply in more than one place.

Re: Application fee with multiple applications?

ezdriver — Wed, 25 Nov 2015 18:23:45 GMT

@Jazzzy wrote:
How do we know for sure what the rate and costs will be if we don't make an official application? We assumed they couldn't quote actual terms until they saw our scores, income, etc. That's why we thought we needed to actually apply in more than one place.

You can allow lenders to pull your credit and provide a GFE for your refinance scenario. After you compare the GFEs and decide which lender to use, then complete the formal mortgage application. The GFE's will disclose all fees that each lender will charge ... including application fees, credit report fees, etc.