Does It Cost To Start The Loan Process??

Reblogger Shawna Green
Real Estate Agent with Keller Williams Realty-Fayetteville

I had one of these calls today...some very dear friends called to say they are ready to buy a house and they want to call someone they can trust (I love it!).  So now I have to tell them, we need to get your financing in order.  I go on to tell them we need to know what type of loan they qualify for and the amount so we know the price range we need.  I heard a small pause and much is that going to cost us?  She then explained there might be some credit issues and they are worried about that.  Thank goodness they feel they can talk to me.  I explained that I work with a great lender and if she does not qualify right now, he will help guide her in what she needs to do to get in a position to purchase a home.    Glad they called me! 

Original content by Melissa McKinney

Does it cost to start the loan process?

I had a new client ask me while we were talking about what to do next in the home buying process.  I told her “no” and that I had someone who would give her a call to get the process started.....

Well that got me thinking, we all know that can be dangerous! Anyway, the thought of getting the qualification process started is pretty simple in its self. The loan officer pulls a credit report and then get the income information, bills, etc and you are well on your way! I want to talk about those that NEVER go any farther then the credit check.....

They do not qualify at this time and will have to do some work to get things up to par so that at some point they can be a homeowner.  You may see them again you might not as a loan officer.

My question is for the clients that do have good credit and make it all the way to the closing table why are THEY being charged a credit report fee? You are already getting the loan and all that goes with that...I think that the ones that actually use the lender and go to closing should NOT have to pay that at all!

Why you ask?? Because of all the ones that DO NOT go to closing they are paying nothing for that step so why should the ones that do use the service?  

Just food for thought and something that I am going to be looking closer at going into 2011.... What are your thoughts?



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Gary De Pury, ESQ.
Bay Vista Realty - Land O Lakes, FL

Outstanding post!  This is a very typical question that I see quite often.

Gary De Pury, SFR

Jan 15, 2011 02:04 PM #1
'The Diamond Group' 'A Cut Above The Rest'
The Diamond Group @ Keller Williams - Lubbock, TX
Lubbock Texas Real Estate

Hi Shawna, I get this question a lot too and also how much a buyers' agent costs so thanks for sharing this info

Jan 15, 2011 02:33 PM #2
Christopher Taylor
Corpus Christi, TX

If there is a charge, it should not be paid by those going through with the process, perhaps there should be an upfront charge that is refunded at closing.

Jan 15, 2011 03:31 PM #3
Shawna Green
Keller Williams Realty-Fayetteville - Fayetteville, NC
The key to your real estate needs!

Gary, me too!

Elizabeth, yes that is usually the second question that comes up!

Christopher, interesting take on it...

Jan 16, 2011 01:45 AM #4
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Hi Shawna, I saw Melissa's post awhile back and it really made me stop and think. It really isn't fair for ones that can qualify for a loan to have to pay for the credit report at closing and the ones that don't qualify are not charged. Plus, from my perspective, our company foots the bill for the majority of the credit report fees. Our average monthly bill is over $2000. So, to be fair we have decided to charge upfront for the credit reports. Individually they don't cost much. $16 for individual and $25 for joint and it is a thing of value. It is helpful to the borrowers to have their credit reports and scores. There may be errors, etc. Thank you for reposting Meliisa's post.  

Jan 16, 2011 06:16 AM #5
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