Home : Blogs : Dustin R. Burke : Dustin's Blog

Good Faith Estimate (GFE)| Items Payable In Connection With Loan

By Dustin R. Burke, Adonai Financial

Items Payable In Connection With Loan, often referred to as the 800 Section of the GFE, is typically the first section listed on the Good Faith Estimate (GFE), a RESPA required document, and includes most fees directly associated with obtaining the loan from the lender, broker, or bank.

Loan charges and costs listed in this section are typically identified with a number in the 800 and most charges associated in this section are figured into the Annual Percentage Rate (APR) on the Truth-in-Lending Disclosure.

***This is a list of the most common fees listed in the Items Payable In Connection with Loan section of the GFE. The fees associated with a specific loan may change from program to program. Actual fees may be more or less depending on the loan program.

801 - Loan Origination Fee: a fee charged by the lender or bank for originating or creating the loan. Many times this fee and the Loan Discount Fee are referred to as "points". Please review an article called Florida Mortgages |When Paying Points Makes Sense for more information on paying points.

802 - Loan Discount Fee: a fee charged to the lender or bank to get a lower mortgage rate. Many times this fee and the Loan Origination Fee are referred to as "points". Please review an article called Florida Mortgages |When Paying Points Makes Sense for more information on paying points.

803 - Appraisal Fee: a fee charged to pay the cost of an independent appraiser.

804 - Credit Report Fee: a fee charged to pay the cost of the credit report.

805 - Lender's Inspection Fee: a fee charged by the lender for the cost of inspecting a property. Some lenders call this an appraisal field review where the appraisal is double checked by the lender for accuracy.

808 - Mortgage Broker Fee: an upfront fee charged by a mortgage brokerage business. In rare cases this fee is identified as points and has the same effect as points. Please review an article called Florida Mortgages |When Paying Points Makes Sense for more information on paying points.

809 - Tax Related Service Fee: a fee charged by the lender to pay the costs of handling tax related matters. This fee is typically very small.

810 - Processing Fee: an administration fee charged for processing the loan (i.e. collecting application details, collecting underwritings requirements, ordering inspections, title, etc.)

810 - Underwriting Fee: an administration fee charged for underwriting the loan.

812 - Wire Transfer Fee: a fee charged for the costs of wiring money on the borrowers' behalf.

These are only a sample of the most common fees and costs in the 800 Section of the GFE. Other fees may include courier fees, MERS registration fees, electronic storage fees, etc.

As you can imagine, there more information than I can put here. If you would like more information about fees on a GFE or items discussed in this section please send me an email to dustin.burke@adonaifinancial.com.

"Adonai Financial, your friends in the mortgage business!"

________________________________________________________________________________________

Adonai Financial Corporation

http://www.adonaifinancial.com/

---The content of this blog is my opinion---

Posted by Dustin R. Burke on 03/09/2008 01:00 PM

Comments (1)

mortgages, mortgage forms, good faith estimate, points, respa, apr

1 Comments on Good Faith Estimate (GFE)| Items Payable In Connection With Loan

MAR

2008