Tim Halladay of Victory Funding differentiates between Statutory Costs and Junk Fees on his weekly radio show Mortgage Solutions.
Some costs are statutory and some others are necessary; you will pay these no matter where you go or who your lender is. Some fees, however are pure junk, You have to know what to ignore and what to pay attention to.
Statutory Costs include title insurance, mortgage tax – NY only, and flood insurance where required. They are generally regulated so the actual fees are fixed and regulated by the government so you can rest assured that there is no haggling to be done.
Required fees include things like the bank attorney, your attorney if your loan is to purchase real estate, title search fees, flood certification fees – to determine if you are in a flood zone, appraisal fees and inspection fees if required.
Junk fees are everything else. Application, processing, origination, title close up, wiring, underwriting and dozens of others. Lenders come up with just about anything to make a couple extra bucks so pay attention and ask lots of questions!
At Victory Funding we charge no junk fees and don’t allow our lenders to charge junk fees to our clients. When borrowers come to our Malta, NY office from any of the surrounding communities like Albany, Troy, Schenectady, Saratoga Springs or anywhere in NY State we make sure they don’t pay for services they don’t get and get what they pay for. Call us today at 899-7700! We can do the entire application electronically as well!
Listen to Tim on 96.7 FM “The New Lght” live every Thursday at 3:00pm or online at http://www.newlight967.com/
