Do you pay a mortgage broker upfront?  My broker ask for 1% of what I am borrowing to get me a mortgage.  Should I pay him?  I thought they get paid at closing but he said he will make no money at closing.

It depends on the type of loan you are getting.  Is this a residential loan?  There can be lock fees, but most companies I know do not charge a fee up front unless it is an unusual situation.

I cannot imagine paying one point in advance for any loan - you can expect to pay an appriasal fee in advance - brokers do get paid at closing - and not before they close and fund the loan for you. 

Yvonne

I can not tell what state that you are in, but here in CA no lender can charge any origination fee up front.  Fees to lock for extended long periods..90 plus days might be levied by a few.

New Federal regs indicated that we can only charge for credit up front, and can not charge for appraisal for three days after you have recieved your Good FAith Estimate and disclosures.

Tread with caution, and maybe consider contacting another broker in your area.

Good Luck.

Yvonne,

If you were my sister, I would ask, tell and implore you to find another lender - even if the broker came back to you and said they did not need the point up front.  Please, be very, very careful and take care of your money!

Thank you for your reply.  Everyone is telling me to find another broker because no broker gets paid upfront.  I guess I should have known better when he asked me not to tell anyone.

Thank you for your reply.  I will not use this broker.  I should have known better when he asked me not to tell anyone.  I am new to this so before I do anything I look for professional advice from good people like you.  Again, thank you.

Yvonne

Again, I do not know what state that you are residing.

In CA you should report this to the Department of Real Estate.  If you are in another state, look up the information or if you have a Realtor ask them.  This should not go unreported.

Good Luck.

I am in Long Island New York.  I will report this immediately.  Thank you.