As we look over each possible deal as mortgage brokers we try to see how much we can maybe make. Now I lucked in and was taught by one of the best loan officers in the state and he tells me that you should just have a set amount fee no matter what. Just be upfront with the new client or Realtor that you make 1 or 2 points regardless of loan amount. Ever since I have done this process 3 years ago I have been really been rocking. My Realtors love that i always have a set amount. I also tell them that I can make it all up in the front, in the back or both. It is what makes the customer feel better. I also am very through in getting the deal done quick and without any problems. I am pretty good at picking up problems in the beginning because of the questions I ask.
Now what brings me to this is that me fees total on a deal are roughly 2500 on a 100K loan. Now that doesn't include escrow but I have had a people all the time that try to get me to come to there companies and man I tell you there JUNK FEE's are crazy!!! One guy was telling me before i can put my fee on a loan you start out after title work and there at 2950. THAT IS CRAZY
Does anyone work with brokers that just rape there clients with fee's? I can not stand people that can do that to a customer. Yes i can understand if there getting a free point or what not then what the hell but these people just put huge fees
Thanks for the comments in advance
Ben
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I have known brokers who charge state max fees and lie to the customers and say that they have to charge state max fees. The funny thing is that people somehow believe it
Eddy
There was a broker in my town, was because he went out of business last week, he would charge max point on the back and two on the front. I really did not like that guy.
If I see a loan officer charging high fees he will never see another referral from me.
Hang in there with your convictions, just don't do it. There are too many good lenders out there that will take you on without hitting the customer hard on fees.
it all depends on who the broker is , some are greedy and will hit clients with all kinds of fees.
This is one of my biggest irritants. As far as I'm concerned, lenders should be held to the same agency fiduciary duties that we are. I always give buyers a list of questions to take with them to the lender so they know what to ask. It makes some lenders crazy, but mostly because it holds them more accountable.
Thanks for the post.
You are absolutely right Benjamin, most of the time I only charge 1 point on the back, in some ocasions 1in the front, but NEVER more than that.
It is important to make all possible disclosures up front when talking to Realtors who refer business to you and to clients you are about to do business with.
Always give value up front, build a list of what you will do for the client. Let them know also what you will do if they are truned down, how you will service them. This list should be in writing. Along with the list, I think it is important to have written testimonials. Build a "Brag Book" and keep it current.
As an investor, I always want a pre-HUD before settlement. I do not want to see any hidden or junk fees at my settlement.
I think you have some good concepts of doing business and I am sure you will not go out of business soon with those kind of work eithics.
Good Luck ----- Charles Parrish