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Mortgages, Administrative Fees, and Saving Your Money
(presented by www.refinance-refinance.net - mortgage lenders)



By Ben Afzal

Basics

An administrative fee is usually charged by the mortgage broker or lender to cover their administrative costs in managing the mortgage process. This can include the administration and tracking of numerous documents, including:

  • pay stubs
  • application form
  • disclosures
  • appraisal report
  • preliminary title report
  • tax records
  • bank accounts
  • retirement accounts
  • employment verification forms

The mortgage process also involves tracking many different parties, including working with:

  • appraisers
  • inspectors
  • realtors
  • escrow officers
  • insurance agents

All of this can be a complex process that requires a substantial amount of work from the loan officer or their assistants. Many different reports from different sources need to routed to the right people for review. Often times a lender will seek clarification from the borrower or appraiser. This involves tracking a new version of documents and making sure the right documents are received and submitted again. This may include many phone calls to return.

Is The Fee Fair?

This fee is usually not more than $1,000 - $2,000.

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HOME LOANS ADVERTISEMENT

See if you can negotiate the price of this. Many mortgage sources have flexibility on their fees, although some do not have much flexibility. It does not hurt to ask for a fee reduction.

If you choose a no closing cost option this expense will be added into the loan rather than being charged up front. You will likely end up with a higher interest rate.

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This entry was posted on Wednesday, October 11th, 2006 at 2:07 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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