monger Posted June 24, 2003 Report Share Posted June 24, 2003 I've been shopping around and requested pre-approval from two different brokers. Since all I'm seeking is a pre-approval and the good faith estimate, I take it I'm not beholden to either. Is this correct? I ask because I've had to sign applications and one had me sign an "origination agreement". At what point am I obligated to compensate the brokers? Is it only if I actually purchase a home and select one of the two? Link to comment Share on other sites More sharing options...
kb9tbq Posted June 25, 2003 Report Share Posted June 25, 2003 Bump - Link to comment Share on other sites More sharing options...
firstsource Posted June 26, 2003 Report Share Posted June 26, 2003 Some Loan Officers ask for an application fee. Don't deal with someone like that. Other than that warning, you are not obligated to actually do a loan until the recession period is over, Sort of 4 days after you sign for a re-fi, and the end of the day you signed for purchases. I think it is wise to get a GFE, so you can see where the fees are going to. Also, one GFE may at first glance seem cheaper than another one, but you need to compare the estimates carefully. For instance if I put down 750 for title insurance (which is a national average for a 150K home) and the other guy puts down 1200. I may look cheaper, but we are actually the same price. You have to pay the 3rd party fees, no matter if the LO guessed high or low. You are billed directly for those fees, and the LO / and/or broker do not legally make anything from those fees.Hope that helps, if I have not completely answered the question, please ask again.Charles Link to comment Share on other sites More sharing options...
newstart18 Posted June 30, 2003 Report Share Posted June 30, 2003 I might even consider getting a GFE from a third lender. Keep in mind that if you deal with a bank, that's who you'll almost certainly be dealing with for as long as you own your home. If you deal with a mortgage company, chances are between 75 - 100% that your loan will be sold to another lender, and maybe even more than once (it happened to me). Loan officers make much of their income from closing costs, and you can see a huge difference (as much as 50%, possibly even more) from one lender to the next. Be ready to negotiate, and question a number of fees (administration fee, document fee, appraisals that should be $250 and are instead $500). Good luck! Link to comment Share on other sites More sharing options...
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