Can there be a mortgage loan without origination and processing fees?

Tips and Deals Forums Home Mortgage Can there be a mortgage loan without origination and processing fees?


This topic contains 4 replies, has 2 voices, and was last updated by  Anonymous 8 years, 10 months ago.

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  • #409564


    I think your lawyer has the best idea IF you really have your hear set on this property. If you think you can find another one down the road that might make you just as happy you might want to let this contract die and give up your good faith deposit until you know exactly where you stand in getting a loan. Your finance issues should have been clear to you before you started this process and the risk is too great if the finances remain “up in the air”.

  • #409565


    Just a couple of thoughts from an outside observer.

    I’ve been in the mortgage business for about 15 years, and in real estate in general since 1989. I’ve never heard of a condo not being eligible for a conventional loan, but was eligible for an FHA loan.

    I wouldn’t release any money before closing. I don’t know if that’s something they do in New York, but it sounds like a big risk to me. If they have another buyer, then they could terminate your contract since you weren’t able to close by the agreed upon date, but if they don’t have another buyer what’s the rush? Losing $ 25k would be a very big deal to me and I wouldn’t ever consider agreeing to that. If they can’t wait, then maybe you should get out of the contract. Maybe they’re about to go to foreclosure and $ 25k would bail them out???

    What does your lawyer say? Does he think this is a good idea?

  • #409566


    I am a mortgage lender. First off I have never heard of a condo not being approved for a conventional mortgage- I have heard of them not being approved for FHA plenty of times!! Personally I wouldn’t give them everything they have asked for with no guarantee of getting the condo. FHA has a Condo questionnaire that if all the answers aren’t what they want they will not do the loan. Example: What percentage of units are owner occupied, what percent are vacant, what percent are rented- how many people are behind on dues etc. Maybe give them $ 1000.00 to hold for another 6 weeks or so but be prepared to lose it if there are problems.. Good luck!

  • #409567


    DO NOT RELEASE ANY MONEY TO THE SELLER! Your lawyer isn’t representing you. It’s too risky to release money to the seller before closing. Unless you MUST have this condo, hold your ground and move on if necessary.


  • #198486


    I am a first time buyer and I received some quotes. One of the quotes I received did not have origination fees or processing fees. The quote also did not have any points. Is this real or am I going to find out at a later time about origination and processing fees? Also, can you negotiate to lower or eliminate this fees? What other fees can be negotiated?

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