Read About These Fees Before Your Meet Your Mortgage Broker!

When it comes to the maze that can be the homebuying process, meeting you’re with your mortgage lender or broker for the first time is often the most intimidating. This is largely because the majority of home buyers go into the meeting unprepared for the types of fees they can expect to pay and are often left wondering if they can continue.

 

To help you prepare your budget to ensure you are in a good position to meet with your mortgage broker, below is some information on the most common fees you should expect to encounter and ultimately pay.

 

Account Establishment Fee

Hang on? Have I to pay a fee before I even apply for the mortgage? Yes and no. Yes, you have to pay a fee before you are approved, but no, it isn’t before the application. It’s FOR the application.

 

There are a number of checks and balances which any respectable mortgage lender needs to carry out, and you can bet that they each cost money. Given that there is no guarantee that you will pass their requirements, they are often unwilling to take on these costs themselves, instead, charging you. While you might not like the idea, they are real services being provided.

 

Repayment Fee

Before you get too worried, you won’t be charged a fee for sticking to your agreed mortgage repayment plan. You will, however, be charged a fee each and every time that you make an additional payment outside of this arranged schedule.

 

Why? Because when your lender is deciding on whether or not to approve your mortgage, one of the metrics they use is how much money they will make in profit through interest paid.

 

When you make additional payments, you are effectively lowering the amount of profit they will make. As you can imagine, a lender isn’t going to be too fond of this idea, and will likely attach a fee for each payment.

 

While each lender will charge a different amount, and even if you aren’t sure you will make extra payments, be sure to ask for this fee before you sign. Just in case.

 

Inspection Fee

When you order items from the Groupon Coupons page for Lids then you know that you will receive high-quality products. The same goes for your lender, however, they will want more proof than a customer review.

 

Instead, they will hire a property inspector of their own to attend the property and ensure its value is equal to or greater than the value of the mortgage, in addition to checking numerous other aspects to ensure the longevity of the property and, in turn, the likelihood of continued mortgage payments.

 

When it comes to getting a mortgage, these are just some of the common fees you can expect to encounter. Speak with your friends and family who have been through the process before and get their advice, too. This can all be a great help when budgeting to meet your mortgage broker or lender for the first time.

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