Loan Officer Commission

[SamLynn24]

Hello, my husband and I are selling our Wisconsin home FSBO (we have an attorney friend for all of the legalities that is charging us a flat rate of $110).

My sister agreed to purchase the house, so no realtors are involved; however, her loan officer wants to charge us 5-6% of the home sale price. Seeing how the loan officer is the only person involved that charges commission, does us paying 5-6% sound right?

 

[adjusterjack]

Sounds high. Suggests that she's dealing with a mortgage broker, not directly with a lender. Points and origination fees average 2% or 3%. There may be other fees, like title insurance, escrow company fees, recording fees.

I suggest that your sister shop around elsewhere for loans. Like with a bank or credit union. And makes sure she gets a written itemization of fees and costs.