Origination Fees?

Origination fee is the loan origination fee paid to the mortgage broker or banker usually around 1% of the loan. Discount points are paid to reduce the interest rate. Prepaid costs would be interest and insurance and items like that that are paid up front. I would think that back taxes would need to be current also, so that would be a cost associated with the the purchase of the property.

Al

Basically you are looking at a buyer's assist, which is pretty common in my area. Normally, the price of the house/building is higher and there is a seller assist. When I put an offer in, I cross the seller assist portion out and offer what I want to offer, minus that seller assist.

For example: Price is $200K with 3K seller's assist. I would base my offer on the 197K price and not 200K price.

I hope I made sense LOL

Yuri

Can someone comment on this?
I recently met an investor in my area with 26 properties looking to sell 4 of them. I'm looking to buy about four; for the first time I'm attempting a "jumbo' loan from my banker. .. a combination loan for all 4 properties;
What would be my first step? individual offers and contracts?
Then present the banker with request that total amount?
ALSO, this gentleman has a prominent attorney(his son!)who owns a title company and partners with him and performs all of his closings. . . . .I'm thinking. . .hummmnnnn. How can I work this in my favor.
Brainstorm with me here. . . .
Ask seller to pay total closing costs. . .since he will have none?
Approximate closing costs and reduce my offer by that amount. Crosstown Looker is looking to hear from you. This is a biggie for me.
thanks much
Grady

Thanks Al & Yuri! The 2 unit (3/1 & 1/1) is going for $79,900. The curious thing is it's ass'd value is $42,100 and zoned commercial. There have been electical, bathroom & floring updates already done. The owner paid 44,800 in 2006. There is something wrong with this picture!

I wonder what mystery lies inside?! I'm gonna go look at this one and find out.

Good luck Mr. Corbin! Sounds like you've got a good one in the works.

Dawn

Has it recently been rezoned to commercial?. Could be why the higher price and the need to sell it.

Bruce

I think it was a business below at one time with an apartment above. I believe the owner converted the entire bldg to apartments. Do commercial properties assess lower than residential? I'm just blown away that this property is so low, it looks nice on the outside. Maybe because it has no parking? I'll be checking it out....If my realtor EVER gets back to me!!!

Dawn

Dawn - if there are that many discrepancies on the price and you're serious about it, I would just get it officially appraised. Will cost about $300-$400, but well worth the money. If you're going to buy it, you'll have to get that done anyway. Hope that helps - Tom