Depending on the lender, mortgage brokers can earn between 1% and 2% of the loan amount. Mortgage brokers can also earn higher commissions when they find jumbo loans.
What Do Mortgage Brokers Charge?
Brokers may also charge an assessment fee. This fee can range from a few hundred dollars to several thousand dollars. This fee is intended to help mortgage brokers determine if you are a good candidate for a mortgage cash home buyers vancouver wa. Some mortgage brokers will refund the fee at the time of settlement.
Mortgage brokers may also charge a commitment fee. This fee is usually less than 3% of the total loan amount and is refundable at the time of settlement.
Brokers may also charge an administration fee. This fee covers the cost of upfront research, fact finding, and other small expenses. It can range from $50 to $200 including GST.
Brokers may also charge a pre-approval fee. This fee covers the cost of a lender’s time spent researching your financial history and preparing your pre-approval. It is a good idea to find out the reason for the fee and why it’s required.
Mortgage brokers may also charge a fee for completing paperwork. Brokers will typically order an appraisal of your home, review your financial documents, and send them to the underwriter. These processes can take a long time.
Brokers may also charge a small loan fee typically $500 to $1000. This fee is for loans that are less than $100,000. Brokers may also charge a trailer fee. This fee is paid in exchange for a lower upfront commission.