Profile picture for Deirdre03

When do you have to pay the finders fee?

I am a first time buyer. I was wondering when you have to pay the loan officer and REA their fees? 
  • January 09 2012 - Las Vegas
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Answers (5)

The seller pays both the listing agent and selling agent's comissions at closing. Some brokerages charge a transaction fee for record keeping but this is usually only a couple hundred dollars if any. This amount (if one) should be disclosed to you prior to closing. You can find all of these fees on your HUD1. Be sure to read each line on the HUD1 prior to signing as you may find errors. The lender will also make their commissions at closing. If they are a mortgage broker they can not charge origination fees anymore. They can only be paid by the yeild spread from the lender. If you are getting financing from a banker directly then there may be an origination fee or a yeild spread premium. Either way this will occur at closing. You should not have to pay a finders fee to neither LO or REA.
  • January 11 2012
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Hello again Deirdre,

Of course there are costs associated with purchasing a home, but appraisal fees and home inspection fees don't constitute finders fees.  There are in fact a number of costs associated with your purchase.  I won't list all them here, but suffice it to say, there are several.  The good news is that in the State of Nevada, although all costs are negotiable, customarily the Seller is amenable to paying up to 3% of the purchase price towards the Buyer's closing costs.  This comes close to covering all of the costs associated with the purchase.  Depending on the structure of the loan, it may cover all of your costs.

Have you found a home yet?

Best wishes, and thanks again for reading.
  • January 10 2012
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Profile picture for kapyarets

Agent and loan officer will be paid after closing and there fee will be in closing statement. There are other payments you may see before closing. If you sign the "Buyer agency contract" there may be a retaining fee. There will be a fee for the appraisal that you have to pay before closing. There will be a fee the inspection. So you will be paying some money along the way before closing.

  • January 10 2012
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Profile picture for Sharon Lewis
Generally speaking the Realtor gets paid at closing with proceeds coming from the seller, not the buyer and Steve answered your question about the lender..
  • January 10 2012
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Hello Dierdre,

There is no finders fee that you are responsible for to the Lender or the Realtor.  The Lender is paid out of the origination fee or from the yield spread premium which happen at close of Escrow.  The Realtor is typically paid their commission by the Seller.  Today, many Brokers may have a transaction fee that they collect, sometimes referred to as "Brokerage Administration commission", but they are typically small (I say typically, because all fees are negotiable) and are also paid at close of Escrow.  All charges are reflected in the Settlement statement as required by law.  this form is called the HUD1 which stands for "Housing and Urban Development".  Federal Law requires that you as the Buyer as well as the Seller are shown all costs associated with the purchase, so that there are no hidden fees.

Best of luck, and thanks for reading.
  • January 10 2012
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