Shopping for a Lender Before Buying Your Home

Some things are a given in buying a home in Tallahassee, and elsewhere. There are always going to be fees, fees, and more fees in a real estate transaction. However, we can minimize the fees significantly by shopping around when looking for a mortgage loan. When shopping for a lender, look for not just interest rates, and terms, but also look at lender fees.

There are three categories of fees that constitute a real estate closing in Tallahassee, and elsewhere:

1. Lender fees are the fees that a lender has control over. They can be presented as multiple fees, such as origination fees, administrative fees, transaction fees, processing fee, tax service fee, loan setup fee, funding fee, and others. There can also be one fee, covering all the fees, so when you are out comparing lenders, you can compare a total lender fee package with other lenders’ fees.

2. Third-party fees are fees that the lender does not control, however, may be able to negotiate the best deal on your behalf. These fees include appraisal, inspection, title, survey, and others.

3. Then, there are the prepaids, such as prepaid interest, and prepaid taxes.

 

Kenneth Fach, REALTOR
Weichert, REALTORS-Anchor
1607 Village Square Boulevard, Suite B103
Blog: http://KennethFach.wordpress.com
Cell 850-339-5753

Each office is independently owned and operated.

Closing costs and Tallahassee real estate

Some things are a given in buying a home in Tallahassee, and elsewhere. There are always going to be fees, fees, and more fees in a real estate transaction.  However, we can minimize the fees significantly by shopping around when looking for a mortgage loan. When shopping for a lender, look for not just interest rates, and terms, but also look at lender fees.

There are three categories of fees that constitute a real estate closing in Tallahassee, and elsewhere:

1. Lender fees are the fees that a lender has control over. They can be presented as multiple fees, such as origination fees, administrative fees, transaction fees, processing fee, tax service fee, loan setup fee,   funding fee,  and others. There can also be one fee, covering all the fees, so when you are out comparing lenders, you can compare a total lender fee package with other lenders’ fees.

2. Third-party fees are fees that the lender does not control, however, may be able to negotiate the best deal on your behalf. These fees include appraisal, inspection, title, survey, and others.

3. Then, there are the prepaids, such as prepaid interest, and prepaid taxes.

Kenneth Fach, REALTOR
Weichert, REALTORS-Anchor
1607 Village Square Boulevard, Suite B103
Blog: http://KennethFach.wordpress.com
Cell 850-339-5753

Each office is independently owned and operated.