CONTRIBUTED CONTENT — Buying a home is a lengthy process that involves many moving parts. With a mortgage, several entities beyond the buyer and lender have a hand in the transaction, and each charges a set of fees.
Seth Christensen, a loan officer with Homie Loans, said homebuyers can expect lender fees, including processing fees, along with a host of services provided at the borrower’s expense. Closing costs typically add up to between 2-5% of the home’s purchase price.
Learn more about third-party mortgage fees from Homie Loans in the “Ask a Local Expert” video in the media player above.
“Any fee that’s being charged by a party that’s associated with the transaction that’s not the lender’s fee is considered a third-party fee,” he said.
Sometimes, the homeowners association of a neighborhood will charge a transfer fee. There’s also homeowner’s insurance, required for any mortgage where the buyer offers less than 20% as a down payment, along with title company fees.
“You can pick your own homeowner’s insurance company, or we can recommend them as well,” Christensen said.
Born out of the need for a simplified mortgage lending process, Homie Loans provides both conventional fixed-rate mortgages and loans backed by the Federal Housing Administration.
Created with the sole purpose of saving customers thousands of dollars on their mortgages, Homie Loans uses technology to automate and simplify the lending process. Whether buying for the first time or refinancing, Homie Loans guarantees they’ll beat any competitor’s locked loan estimate or pay clients $500.
Homie Loans is the sister company of real estate disruptor Homie. Since first launching in Utah in 2015, Homie has been changing the way homes are bought and sold. Their software platform streamlines the process from contract to closing, eliminating excessive fees and agent commissions along the way.
Find more information on the Homie Loans website.
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