What are the fees usually involved in acquiring a loan?
Typical lender fees include processing and underwriting fees, appraisal fees, loan origination fees, and third- party costs like title or escrow fees, plus other expenses which are non-recurring over the life of the loan.
What do you mean by “expenses which are non-recurring over the life of the loan?”
Non-recurring expenses are costs or fees that are paid one time only. It does not include payments on interest, insurance, and property taxes—defrayments that occur on a regular or periodic basis, like monthly installments or yearly fees.
What are the benefits of getting a no-fee loan?
A no-fee or no-cost loan is a transaction in which the lender pays for the settlement costs and the lender fees listed above. (The lender will have an array of options to make up for the absence of fees that normally must be paid.) Homebuyers benefit from no-fee loans by not having to scrape up larger sums in order to secure a deal on the house they want. Therefore, no-fee loans remove one of the biggest obstacles that prevent people from buying their own home.
How can I be sure there are no trade-offs or other hidden costs involved?
The definition of no-fee loans differ with each lender. As a homebuyer, you must ask your lender or broker about the specific terms offered. Before you agree to terms, make sure you’re provided with a comparison and explanation of :
- Upfront costs
- Payments with and without above fees involved
We at Codemark Financial want you to be able to maximize your investment and gain more financial freedom while focusing on the things that matter most.