If you get mortgage financing with a prime lender, usually there will not be a broker fee involved. A prime lender often approves only those borrowers who have good credit and enough income to service the requested loan amount. Examples of prime lenders are major banks, credit unions and monoline lenders.
Your broker may charge a broker fee if you require an alternative loan or private loan. These types of lenders service borrower who either have bruised credit or a unique income situation or don’t fit the criteria of prime lenders. Unfortunately, there isn’t a standard fee that brokers charge with alternative and private loans since it depends on each file.
Why Is There A Broker Fee Payable For Alternative and Private Loans?
Not all brokers will charge a fee on alternative loans. However, in most cases, alternative and private lenders do not compensate brokers for the file they originated. Therefore, the fee becomes payable by the borrower.
If you have questions about broker fees, please call or write.
Sarah A. Colucci
Mortgage Agent, Lic. M14000929
Mortgage Edge, Broker 10680
Direct: (647) 773-4849
By: Sarah Colucci