I went to Bank of America last year and got a approval or estimate on a home loan for $47,500.
The sale fell through and I looked for another house and it was being sold for under $40,000. I remember hearing the loan officer say “the size of the loan is not worth the time”.
So, I went back and looked on the previous loan details and I did not see commission but I saw “lender fee”. I asked if this was a commission or a certain % of the loan amount or a set amount. I was told it is a set lender fee. If the fee is “set” why would loan officers at huge banks not want to write smaller loans like $38,000? If the fee is set why does it matter?
In the big picture of things, the billions of dollars of home loans given out by Bank of America, why are my small loan request given lower priority, it seems?
I have a good credit score and other assets and risk on me is 0.
It sounded like loan officer was making more $ loaning me $50K than if loan was $35K. As far as inferior homes, they have 2 B appraised. The reason the house I look for is under $50K is because that is my budget and some of these are foreclosures and are worth alot more than the cost. If the loan officer makes the same amount of money (commission) on a $50L loan as a $35K loan then the loan officer should not care. I wanted to assure the officer that their help was greatly appreciated and I am open minded to a “gift” to justify a 35K loan versus a $50K since it seems he gets impatient with smaller loans.
I’ve got an agreement with my real estate buying agent. I said, don’t worry about the commission. We’ll go with 3% of $45K even if you find me a $30K home. I’ll go with a minimum commission 4 help on these lower cost houses. I’d do same with bank officer, minimum commission, if they work on commission. Do they?