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How much should a normal loan processing or underwriting cost?

I keep hearing on radio for example on "no cost" loans. How do some lenders like cash call get to do no cost loans and others charge a processing fee? by jonathan.breem883 from Garden Grove, California. Feb 17th 2017 Reply


Keith Geller (renet01)
#346 ranked lender in California - 5 contributions

All mortgage loan originators have rates available that will give their borrowers money at closing that will pay their closing costs without adding anything to the principal balance. The interest rate can be at par (no credit back) or at a higher rate that offers at premium back to the borrower. This extra premium helps pay some or all of borrower's closing costs.For more information, please contact Keith at 805-358-1116.

Feb 17th 2017
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Blake Kleckner (BlakeK)
#355 ranked lender in California - 250 contributions

All loans have costs, however, there is a credit that I get for my clients to be applied to the costs that can eliminate some, if not all, of them. Most of my clients don't want to pay anything at the close so I structure their loans that way, which then would be considered no cost loans, that is, no points or no fees. The amount of the credit is directly related to the interest rate. The higher the credit needed so that nothing has to be paid out-of-pocket at the close, the higher the interest rate. There really aren't "normal" loan processing or underwriting costs. They depend upon the lender and can range from $1,400 to $2,000 for both. Give me a call 16/7, or email me your phone number so I can call you, and I'll be happy to walk you through the process. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. If you get a chance, read some of my blogposts on Lender411. They are quite informative. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. I started doing mortgage loans in CA in 2006, only do them there so I have an exceptional understanding of this extraordinary market, and, unlike the vast majority of loan officers, I am an accountant by education. As such, I am able to analyze current market conditions and structure creative loan alternatives for my clients in a manner much different, and more advantageous to them, than virtually all other loan officers. Representing more than 60 quality lenders that offer in excess of 1,500 loan programs, we definitely have something for everybody.

Feb 17th 2017
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Elva Wormley (ElvaWormley)
#783 ranked lender in California - 26 contributions

Hi Jonathan, processing and underwriting fees vary depending on the lender. The processing fee can be as low as $495 and as much as $1,295 or more. The same for the underwriting fee. Most lenders do offer a "lender credit" option where some or all of the closing costs are paid with the lender credit. The higher the interest rate the more lender credit. Please feel free to contact me for more information at 408-615-8500.

Feb 17th 2017
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Michael Diaz (sincityloandr)
#59 ranked lender in Nevada - 25 contributions

If you are getting under a total of $1500 for processing and underwriting fees you are in the ball park. ANy lender can do a no cost loan, they just give a higher rate to offset that. Mortgage Bankers and Banks are able to do this more effectively. The rate isn't everything though, I would check the ability to close loans on time and with as little drama as possible. Its a different lending place these days.

Feb 19th 2017
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Larry Gray (lgray_312_247)
#562 ranked lender in California - 1,127 contributions

Cash Call does it just the same as any lender by providing a rate that enables us to absorb the usual costs to the escrow company and for title insurance, for appraisal, lending fees, and recording fee. We all must compete on rate/price. I, as do a number of other mortgage planners/consultants/loan officers attempt to compete on rate and price while adding the still valued dimension of actually delivering pain-free loans at the rate/pricing assured from the get go.

Feb 20th 2017
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