What is the first thing we explain to our real estate buyers at REMAX of Valencia California?
We make sure they are well covered when it comes to preparing to buy a home, condo or a town home.
This includes a dissertation on what questions to ask a lender when it comes to getting the loan prepared and approved.
Some of our real estate buyers want us to double check the lender figures – and while we are not lenders – we are realtors, we do know what are ‘typical’ fees from a mortgage lender and what may appear to be “excessive” fees for a mortgage broker or bank.
Most of the time, when you are entering the home buying process with a VA loan – those loans for Veterans, you can rest assured that the “gouge factor” is going to be less than the other loan types.
With an FHA and Conventional Loan – the “Gouge factor” may be a lot higher!
In some circumstances, these fees can be more than you have bargained for when it comes to buying your Santa Clarita home.
Back in the heyday of real estate, just before the market broke in 2006/2007, we observed that some other real estate buyers clients were getting “gouged” in the worst of ways.
Their lender was also their real estate agent and taking full advantage of that fact.
We observed fees exceeding 3% of the purchase price for originating the loan.
Folks – no matter how you slice that, it ends up ugly.
We also noted that the real estate agent/lender who was representing them on the purchase also was charging them a commission to buy through them – at the cost of 3 percent.
When a buyer wants to buy a home, their agent, the one they have chosen to represent them in the purchase of a home, is not part of their costs. They are being compensated by the real estate seller. The real estate seller, even if represented by another realtor, has factored in their commission – the commission for the agent representing the real estate buyer.
Make sure you interview our team when you are ready to embark on your real estate journey.
I’m Connor MacIvor with RE/MAX of Valencia and I am the team leader, proud to be of service!