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Buying property out of state

We plan to buy an investment property in Arkansas and we have questions. Is it normal to charge a loan fee on top of the loan? A lender is asking for a $3k fee for a 20% down payment. Do we have to deal with a local lender or can my bank handle the process if they operate in the state? by angela175 from Fort Worth, Texas. Aug 9th 2022 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,431 contributions

The lender you use MUST be licensed to make a loan on an Arkansas property. There are many factors that go into pricing, and charging an origination fee may be appropriate, depending on the circumstances you present. If you would like another opinion/or loan quote, reach out and lets see what we can do for you. As America's largest independent Mortgage Broker, NEXA Mortgage is hard to beat. Give us a call. ~Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified Mortgage Advisor and Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.NEXA is licensed in all states except MA and NY so give us a call. ~ 480-889-9000 - OR - 480-695-9300.

Aug 9th 2022
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,729 contributions

Not sure what you mean by loan fee? I assume you mean an origination fee, or discount point. No one works for free, and all lenders get paid. It is the little ball under the three red cups. It is always there. Just where is it. Interest rate and closing costs go hand in hand. You can pay more in costs up-front, and get a lower rate. You can pay less up front, but you'll have to take a higher rate. Just ask the lender for those various options, then you decide which one works best. If you are not already, I suggest to you talk with a local mortgage broker near wherever the property will be located for a second opinion. I provide home loans in MN, WI, IA, ND, and SD. Reach me at - NMLS 274132. Cambria Mortgage.

Aug 16th 2022
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