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Help! Review these GFE (Long post)


Df4life
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These were sent to me, but it may not be the program that I am going use. It is something to get an approval. I was told I could not apply for VA, because I am not in the location that the house is being built. My middle score for these rates was 606, based on an old credit report. I am sure that it is higher now, but I am not able pull fico, because of fraud alerts on my credit report. I am going with Countrywide due to my builder offer a $3000 incentative toward closing. These GFE seems high to me. I need some help. There are two loans (80/20). The 80 is 7.375% 3/28 Arm, the 20 is 10.875% 15year balloon. The purchase price is $245K, but the loan is for $250K

GFE on 80%

Loan Discount is 2% =$4000.

Apprasial = $300

Credit report = $35

Procesing fee = $695

Tax Service = $60

Flood Check Fee = $26

Commitment = $175

Underwriting fee = $395

Document Prepartion - Lender = $100

Broker fees/Loan Orignation fee 1% to CHL P.O.C --L = $2000

---It states that this cost is paid by the lender and not include in the total,

but I think that this is a hidden cost.

Prepaid interest 8 days at 40.41 = $323.28

Attorney/Settlement Agent = $350

Title Insurance = $2000

Courier/Express mail closing = $30.00

Recording Fee = $50

City/County Tax = $400

State Tax/Stamp = $700

Survey = $325

Total Closing Cost - $9,964.28

GFE on 20%

Loan Discount is 3% =$1500

Procesing fee = $295

Prepaid interest 8 days at 14.90 = $119.20

Hazard Insurance Program = 960

Attorney/Settlement Agent = $350

Title Insurance = $500

Courier/Express mail closing = $30.00

Recording Fee = $50

City/County Tax = $100

State Tax/Stamp = $175

Total Closing Cost - $3,679.20

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OUCH!

The purchase price is $245K, but the loan is for $250K

You are financing more than the home is worth, so where is the "incentive?"

GFE on 80%

Loan Discount is 2% =$4000. Income for the loan officer

Apprasial = $300

Credit report = $35

Procesing fee = $695 More income

Tax Service = $60

Flood Check Fee = $26

Commitment = $175

More income

Underwriting fee = $395 Must be charged by a broker, but not a direct lender, hence more income

Document Prepartion - Lender = $100

Broker fees/Loan Orignation fee 1% to CHL P.O.C --L = $2000

---It states that this cost is paid by the lender and not include in the total,

but I think that this is a hidden cost. Reality, this is more income to the loan officer

Prepaid interest 8 days at 40.41 = $323.28

Attorney/Settlement Agent = $350

Title Insurance = $2000

Courier/Express mail closing = $30.00

Recording Fee = $50

City/County Tax = $400

State Tax/Stamp = $700

Survey = $325

Total Closing Cost - $9,964.28

GFE on 20%

Loan Discount is 3% =$1500 Income for the Loan Officer

Procesing fee = $295 more income

Prepaid interest 8 days at 14.90 = $119.20

Hazard Insurance Program = 960 I have never seen the hazard insurance placed on the second mortgage, but it still is a cost.

Attorney/Settlement Agent = $350

Title Insurance = $500

Courier/Express mail closing = $30.00

Recording Fee = $50

City/County Tax = $100

State Tax/Stamp = $175

Total Closing Cost - $3,679.20

That's at least $8,790 in commissions, not including any addtional yield spread, that may be included.

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