credit report - What Are Junk Fees In A Mortgage Deal

Basics A junk fee or a garbage fee is a fee that is either: an unnecessary fee a legitimate fee that is too high Unnecessary Fees You should not have to pay an application fee. This is a basic fee that you should always avoid. No mortgage broker or lender that is competent and fair needs to charge a borrower up front just to apply for a loan. The most you will need to pay is a fee to cover the cost of your credit report. This is an expense a mortgage broker or lender will incur to check your credit. A credit report usually costs less than $50. The mortgage broker or lender should only charge you what the credit report costs them, and not markup this cost. Legitimate Fees That Are Too High There are many fees that you will be charged that a mortgage broker or lender can control because these are items they directly charge you. You generally shouldn't pay a processing fee over $1,500. Check to see if this can be lowered. You also generally shouldn't pay more than 1-2 "points" up front on your loan. A point is one percent of the loan's size. If your property is very small in value there may be an exception to this. You shouldn't have to pay very much to have your appraisal report evaluated. Although you may need to pay for an appraisal report (usually around $350) you can pay this directly to the appraiser. The mortgage broker or lender should not charge high fees to analyze the appraisal report to see what kind of loans you may be eligible for. This fee is almost always only charged by the lender because they have a staff that reviews the appraisal for accuracy. Saving Your Money You can save money by carefully evaluating competing loan offers. Make sure your loan offers are comprehensive, and that the offer represents all the costs you will incur. It is easy to get a lowball offer. Just because an expense is not listed on an offer doesn't mean you will avoid it. The offers are usually only estimates. Get Mortgage Rates, 25+ Free Mortgage Calculators, Mortgage Quick Tips and Much More Mortgage News from Archer Pacific Payment Option Mortgage News Article Source:http://EzineArticles.com/?expert=Ben_Afzal credit report - Beating Identify Fraud Here are a few tips to ensure you don't become a victim of identity fraud. Keep your pin a secret - This cannot be stressed enough. Never tell anyone your pin. Never write your pin and keep it with your credit card. If you do and your credit card is stolen the fraudster will have full access to your money and you will be fully liable for any losses. Conceal your pin at the ATM - Cover the hand keying the pin into the keypad with the other hand. The fraudsters are extremely innovative and have been known to place cameras to record the pin number. Shred - Don't throw your old bank and credit card statements and utility bills with your rubbish. Fraudsters are now sourcing dustbins to get hold of these documents with your name and address. Armed with this information they can make applications for credit in your name. Inform your bank and utility companies of your new address - When you move home and don't inform the relevant bodies of your new address the fraudster can intercept post sent to you at your old address. He can then use the name and address to prove where you live and obtain credit in your name. Check your credit report - The fraudster can only make an application for credit in your name if they have access to your bank/credit card statements or utility bills. So remember the importance of shredding the aforementioned documents and ensuring that no one else can access the same. Obtaining a credit report will reveal if any lenders have checked your credit file. The lender will only check your credit file if you have made an application for a credit. If you know you have not made any such applications report it directly to the lender so that you do not become a victim of identity fraud.