Posted on: 21st Feb, 2008 12:31 pm
i am trying to find out what the maximum allowed application fee is for a broker/lender in New York
Hi Adibuccio,
Welcome to the forum.
Application fee varies from state to state. I am not sure though but it should be around $50 to $100 in New York. Hope someone from New York will give you the exact amount.
Best of luck,
Larry
Welcome to the forum.
Application fee varies from state to state. I am not sure though but it should be around $50 to $100 in New York. Hope someone from New York will give you the exact amount.
Best of luck,
Larry
for many lenders, there is no such thing as an application fee. what you will find, however, is that many charge an underwriting fee, a commitment fee, a processing fee, and a myriad of others.
many lenders also consider the appraisal fee, which needs to be received upfront, to be a sort of application fee. in my experience and in this area, at least, the only fee paid at the time of application is the appraisal fee; and that, of course, is being paid to an outside party anyway.
many lenders also consider the appraisal fee, which needs to be received upfront, to be a sort of application fee. in my experience and in this area, at least, the only fee paid at the time of application is the appraisal fee; and that, of course, is being paid to an outside party anyway.
gmakerley is right. Most lenders do not have an application fee. Beware of those that charge more than 100 upfront. I have heard of a couple companies charging up to 1% of the loan amount. Definately do not get roped into doing business with that type of company.
I agree with George and Lisa...in my opinion an application fee is a junk fee.
I'm not sure why anyone may consider an application fee a 'junk fee'.
I never charge upfront or application fee. When I first got a mortgage I was charged an application fee. The interest rate/fees ended up to be the lowest out of 4-5 lenders that I shopped.
Many lenders MAY NOT charge 'junk fees' but they usually have a higher rate. You have to find a good lender who is in the happy medium. It's your job as a borrower to compare, and to see which one will be a better deal.
I never charge upfront or application fee. When I first got a mortgage I was charged an application fee. The interest rate/fees ended up to be the lowest out of 4-5 lenders that I shopped.
Many lenders MAY NOT charge 'junk fees' but they usually have a higher rate. You have to find a good lender who is in the happy medium. It's your job as a borrower to compare, and to see which one will be a better deal.
In many cases an application or any upfront fee is used to keep clients from shopping around and leaving as soon as someone offers something better to them.
Since mortgage loans are harder to do and take more time nowdays I am thinking this practice will become more and more popular by mortgage brokers down the line. No one likes to see a client walking away after 2-3 weeks of working with you based on the promise of getting 1/8th lower rate.
It used to be quite common practice especially with banks to take upfront application fee before. Not only does it help to retain the client it also shows the commitment from the potential client.
Since mortgage loans are harder to do and take more time nowdays I am thinking this practice will become more and more popular by mortgage brokers down the line. No one likes to see a client walking away after 2-3 weeks of working with you based on the promise of getting 1/8th lower rate.
It used to be quite common practice especially with banks to take upfront application fee before. Not only does it help to retain the client it also shows the commitment from the potential client.
