What upfront costs should I expect to pay when applying for a multifamily loan? Can they be paid at closing?

In Buying Property - Asked by Dwight B. - Jan 29, 2010
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Answer(s)

Jim B.
Broker/Agent
Hinsdale, IL

Nothing

Jan 29, 2010
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Katherine H.
Broker/Agent
San Rafael, CA

You will need to pay an appraisal fee, the cost is dependent on the size and type of property.
Katherine J. Higgins
Top Producer Investment Sales
Bradley Real Estate, Inc.
851 Irwin Street, #104
San Rafael, CA 94901
415-302-7730

Jan 29, 2010
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M M.
Owner/Investor
Newark, NJ

You will typically need to pay an application fee and to pre-pay for all of the due-dilligence reports such as surveys, inspections, and title searches, and possibly environmental reports. After you are approved for the loan, you will need to pay a commitment fee in order to execute the loan commitment letter.
Recently, I paid $8K for the application fee, $12K for the due-dilligence reports, and a commitment fee of 1.25% of the loan amount. All of these costs were non-refundable and this lender would allow them to be paid at closing. I'm not sure whether these dollar amounts are standard for the industry, or whether these were simply what my lender charges. I also don't know whether there are other lenders out there that will allow these costs to be paid at closing anymore.

Jan 29, 2010
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