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Ambassador
3,164,294
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

to pay the loan originators

Jan 07, 2023 02:45 PM
Rainmaker
1,543,823
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Beyond what Tammy Lankford, shared, I'd ask Jason E. Gordon if you want the details of why, but Tammy summed it up. Everybody needs to get paid or why would they do the work?

Jan 08, 2023 06:43 AM
Ambassador
3,345,091
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Tammy Lankford, nailed this one! 

Jan 07, 2023 03:05 PM
Ambassador
3,125,819
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

What Tammy Lankford, said!

Jan 07, 2023 04:56 PM
Rainmaker
1,052,211
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Well . . . since no one works for free . . . the loan originators do need to be paid!

Jan 08, 2023 06:53 AM
Rainmaker
1,197,152
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

closing costs are called different things by different folks.   find a preferred lender and aske them that question

Jan 08, 2023 06:43 AM
Rainmaker
2,781,173
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

For the buyer? It remains a path one must travel and pay for the privilege to proceed with buying a home. For the industry, it provides a living to those in the business. When loans become too easy to procure, these fees diminish

Jan 08, 2023 05:33 AM
Rainmaker
5,216,398
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Tammy Lankford, nailed this one!

Jan 08, 2023 04:05 AM
Ambassador
5,049,183
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I think Tammy Lankford, got it right!

Jan 07, 2023 07:32 PM
Rainmaker
2,182,552
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

They either lower the Interest Rate or merely increase the Lenders Profit 

Jan 09, 2023 05:59 AM
Rainmaker
1,311,397
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Best answer from Richie Alan Naggar 

Jan 08, 2023 07:51 AM
Ambassador
6,393,404
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Folks need to get paid to handle all the paperwork.

Jan 07, 2023 05:23 PM
Rainmaker
634,531
Jason E. Gordon
CMG Mortgage, San Diego, CA - San Diego, CA
Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE

Lenders need revenue to stay in business, but often call their fees by different names. Whatever they wish to call their fees, they must be listed in "Box A" of the Loan Estimate to allow a consumer to make an apples-to-apples comparison if they are shopping lenders...especially if those lenders label their fees differently. Box A is called "Origination Fees" (so any fees that are itemized in that box can be construed as Origination Fees)

Jan 08, 2023 02:32 PM
Rainmaker
900,128
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Basically, for bank profits. It lowers your APR, but if you do the numbers, the upfront charges don't make sense. 

Jan 08, 2023 09:30 AM