Good_Faith_Estimate_Real_Estate_Investor_Mortgage

Below is an estimation of the closing costs associated with your loan. Many of these fees are controlled by third parties and thus we cannot guarantee them. We suggest that where you can you please contact the third party company directly and ask them for a written estimate.

When comparing our good faith estimate to others we urge you to look for the following;

1. Points/Origination Fee/Broker Fee - These are all fees that are padding the loan officers pocket (They are NOT used to lower your rate)

2. Additional Junk Fees – If a fee is listed other than shown below it is most likely a junk fee and is being used to pad the loan officers pocket (eg. Application fee, Credit report fee, admin fee, licensing fee, commitment fee, lock fee)

3. Low Ball Estimates - Loan officers sometimes will offer low ball estimates of third party fees, taxes, reserves, etc to make the total closing costs amount look attractive, when the loan closes and the true fees are exposed the loan officer blames the third party.

4. Yield Spread Premium – Many loan officers keep their option open to increase you rate quote near the closing date, a telltale sign is when they show a yield spread premium being paid to them as a range (eg. 0% - 3%). This means they can legally increase your rate to earn 3% bonus from the lender

800 Items payable in connection with the loan	Estimated Cost	Comments

Appraisal fee (This fee is determined solely by the appraiser)	$450 for Non-Owner Occupied Borrowers $325 for Owner Occupied Borrowers	Investor appraisals are more expensive because lenders will require additional items. (rental survey and market rent analysis)
OneFee (This is our flat fee to do your loan, sometimes it is better to have the lender pay this fee by increasing your rate and allowing a broker yield spread premium)	$1,495	Most lenders will earn 1% origination fee plus 1% - 2% in lender paid fees. All of our rates quotes are based on the lenders wholesale “Par” rates
Processing Fee (This fee is determined by a previously agreed on contract we have with the loan processor we hire)	$495 1st Mortgage $225 2nd Mortgage (if required)	Most efficient companies hire a loan processor to handle to paperwork on your loan.
Other Junk Fees (Many loan officers pad their fees with miscellaneous fees)	$0	We do not charge you an application fee, credit report fee, overnight fee, mortgage insurance application fee, assumption fee, or any other junk fees
Lender Fees (underwriting fee, tax service fee, doc prep fee, flood cert fee, wire transfer fee,)	$827 1st mortgage $225 2nd mortgage (if required)	Each lender has several fees for different items and are each different. We quote the typical total for these miscellaneous fees.
Broker Yield Spread Premium (Our OneFee Program allows us to offer you the lenders “PAR” wholesale rate instead of padding our earnings and pushing up your rate)	0%	The loan officer is paid by the lender to “sell” you a higher rate. For each 1% in Yield Spread Premium shown you can expect your rate to be .50% higher than the broker is authorized to offer

1100 Items payable in relation to the Title	Estimated Cost	Comments

Settlement or Closing Fee	$180	Fee charged by the settlement companies (can vary greatly)
Abstract or Title Search	$75	Fee charged to verify your title is clear (can vary greatly)
Title Exam	$75	Fee charged to review your title (can vary greatly)
Title Insurance	$500 per 100K	The total cost of the owners title insurance, many time the seller pays this (check your sales contract)
Endorsements	$150	Many times lenders want specific coverage's added to your title insurance policy
Courier fees	$50	Title company cost to send documents to lender
Admin fees	$50	Miscellaneous fees charged by title company
Survey	$250	This will only be ordered if required and previous survey is not accepted.

900 Items required by lender to be paid in advance	Estimated Cost	Comments
PrePaid Interest (Loan Amount x Interest rate / 365 x Number of days until end of month)	Calculate based on your interest rates	This is your interest payment from the date of closing to the end of the month, we usually quote 15 days
Hazard Insurance – This is determined by an insurance agent of your choosing	Lender will want to see that the first years premium is paid.	12 Months coverage will be required.
Hazard Insurance Escrow Reserves - Only if you choose to have the lender collect escrows. (Most loans allow you to remove this requirement)	2-3 months of Insurance premium	If Insurance Escrows are removed it will typically increase your rate by .125% - .25%
Property Tax Escrows - Only if you choose to have the lender collect escrows. (Most loans allow you to remove this requirement)	3-10 months of tax payments	This account can require 3 – 10 months of taxes depending on when taxes are due in your county. If Tax Escrows are removed it will typically increase your rate by .125% - .25%

1200 Government Recording and Transfer Charges	Estimated Cost	Comments
Recording Fee	$180	This is fee county charges to record your mortgage and deed (Title company can give you a more accurate quote)
Local Taxes/Stamps		Some states and areas charge taxes to transfer property (Title company can give you accurate quote)
State Taxes/Stamps		Some states and areas charge taxes to transfer property (Title company can give you accurate quote)

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Author of this article is Danny Garcia, this and other articles related to real estate investing and real estate investing mortgage loans can be found at www.InvestorMortgage.org

Real Estate Investor Mortgage Loans. 100% LTV, Stated Income, No Doc, No Ratio, No Seasoning Good_Faith_Estimate_Real_Estate_Investor_Mortgage_Loans

Good Faith Estimate

Below is an estimation of the closing costs associated with your loan. Many of these fees are controlled by third parties and thus we cannot guarantee them. We suggest that where you can you please contact the third party company directly and ask them for a written estimate.

When comparing our good faith estimate to others we urge you to look for the following;

1. Points/Origination Fee/Broker Fee - These are all fees that are padding the loan officers pocket (They are NOT used to lower your rate)

2. Additional Junk Fees – If a fee is listed other than shown below it is most likely a junk fee and is being used to pad the loan officers pocket (eg. Application fee, Credit report fee, admin fee, licensing fee, commitment fee, lock fee)

3. Low Ball Estimates - Loan officers sometimes will offer low ball estimates of third party fees, taxes, reserves, etc to make the total closing costs amount look attractive, when the loan closes and the true fees are exposed the loan officer blames the third party.

800 Items payable in connection with the loan

Estimated Cost

Comments

Appraisal fee (This fee is determined solely by the appraiser)

$450 for Non-Owner Occupied Borrowers

$325 for Owner Occupied Borrowers

Investor appraisals are more expensive because lenders will require additional items. (rental survey and market rent analysis)

OneFee (This is our flat fee to do your loan, sometimes it is better to have the lender pay this fee by increasing your rate and allowing a broker yield spread premium)

$1,495

Most lenders will earn 1% origination fee plus 1% - 2% in lender paid fees. All of our rates quotes are based on the lenders wholesale “Par” rates

Processing Fee (This fee is determined by a previously agreed on contract we have with the loan processor we hire)

$495 1st Mortgage

$225 2nd Mortgage (if required)

Most efficient companies hire a loan processor to handle to paperwork on your loan.

Other Junk Fees (Many loan officers pad their fees with miscellaneous fees)

$0

We do not charge you an application fee, credit report fee, overnight fee, mortgage insurance application fee, assumption fee, or any other junk fees

Lender Fees (underwriting fee, tax service fee, doc prep fee, flood cert fee, wire transfer fee,)

$827 1st mortgage

$225 2nd mortgage (if required)

Each lender has several fees for different items and are each different. We quote the typical total for these miscellaneous fees.

Broker Yield Spread Premium (Our OneFee Program allows us to offer you the lenders “PAR” wholesale rate instead of padding our earnings and pushing up your rate)

0%

The loan officer is paid by the lender to “sell” you a higher rate. For each 1% in Yield Spread Premium shown you can expect your rate to be .50% higher than the broker is authorized to offer

1100 Items payable in relation to the Title

Estimated Cost

Comments

Settlement or Closing Fee

$180

Fee charged by the settlement companies (can vary greatly)

Abstract or Title Search

$75

Fee charged to verify your title is clear (can vary greatly)

Title Exam

$75

Fee charged to review your title (can vary greatly)

Title Insurance

$500 per 100K

The total cost of the owners title insurance, many time the seller pays this (check your sales contract)

Endorsements

$150

Many times lenders want specific coverage's added to your title insurance policy

Courier fees

$50

Title company cost to send documents to lender

Admin fees

$50

Miscellaneous fees charged by title company

Survey

$250

This will only be ordered if required and previous survey is not accepted.

900 Items required by lender to be paid in advance

Estimated Cost

Comments

PrePaid Interest (Loan Amount x Interest rate / 365 x Number of days until end of month)

Calculate based on your interest rates

This is your interest payment from the date of closing to the end of the month, we usually quote 15 days

Hazard Insurance – This is determined by an insurance agent of your choosing

Lender will want to see that the first years premium is paid.

12 Months coverage will be required.

Hazard Insurance Escrow Reserves - Only if you choose to have the lender collect escrows. (Most loans allow you to remove this requirement)

2-3 months of Insurance premium

If Insurance Escrows are removed it will typically increase your rate by .125% - .25%

Property Tax Escrows - Only if you choose to have the lender collect escrows. (Most loans allow you to remove this requirement)

3-10 months of tax payments

This account can require 3 – 10 months of taxes depending on when taxes are due in your county.

If Tax Escrows are removed it will typically increase your rate by .125% - .25%

1200 Government Recording and Transfer Charges

Estimated Cost

Comments

Recording Fee

$180

This is fee county charges to record your mortgage and deed (Title company can give you a more accurate quote)