Seems you are correct. I guess you can see I havent been in that business for a few years.
Either way its disclosed in section J on the Loan Estimate and Closing Disclosure as lender credit.
J. TOTAL CLOSING COSTS (Borrower-Paid)
Lender credits?
Thats not a disclosure, that's a way broker makes you feel good you even getting more.
Need to ask.
If you know there's what to ask.
Bottom line is, it costs money to get a mortgage. Regarding the broker/bankers commission- theyre either going to make money in the front (charging you points) or the back (higher rate re: YSP or SRP). Same holds true weather youre dealing with the Mortgage guy at your local C&S down the street, the guy at Chase, or any mortgage broker out there.
I want to know my options so I can compare and sometimes even pay more for better serves.
I can guarantee you that 99% of ppl don't know anything about this.
Reminds me of when I was shopping and the banker was convincing me that if I take the loan from the bank directly I pay no fees as there is no origination fees. Asked Morgage broker he said no you get credit for origination fee we dont charge that either.
To be clear by borcker did an amazing job and got me lan lts others said I can't get without a cosigner, but....