Does Wells Fargo pay for appraisal?

I

irvinetabby

New member
Hi,
We are signing escrow documents in an hour and I'm scrambling to review the items (should've done it sooner, I know).
I tried calling WF agent regarding my questions but they were not too helpful. My questions are:

1. Does WF pay for appraisal? I know many small lenders pay for it but WF charged me $607. I paid for it at the time without realizing I should've probably bargained. Or maybe it doesn't make a difference, as WF doesn't do that?

2. Is the lender responsible for any fees at all? Looks like I'm the only responsible for just about everything on the statement. Escrow fee alone is about 2k. No one else (seller aka IP or lender aka WF) is responsible for anything?

Thanks!
 
The fees are laid out in your escrow instructions. You can call your escrow company and see if they can quickly look it up for you or look thru your escrow instructions.
 
irvinetabby said:
Hi,
We are signing escrow documents in an hour and I'm scrambling to review the items (should've done it sooner, I know).
I tried calling WF agent regarding my questions but they were not too helpful. My questions are:

1. Does WF pay for appraisal? I know many small lenders pay for it but WF charged me $607. I paid for it at the time without realizing I should've probably bargained. Or maybe it doesn't make a difference, as WF doesn't do that?

2. Is the lender responsible for any fees at all? Looks like I'm the only responsible for just about everything on the statement. Escrow fee alone is about 2k. No one else (seller aka IP or lender aka WF) is responsible for anything?

Thanks!
Click to expand...

The time to ask these questions was when you received the initial Loan Estimate at the beginning of the process. Now you're stuck.
 
I did my investment purchase with Wells Fargo as well

They should have clearly told you the closing costs when you received the good faith estimate or loan estimate at the beginning.  Within the 1st few days, they should've given you a wellsfargo loan processing website that has electronic copies of all disclosures and pricing.  If you are asking if Wells Fargo should've paid for the fees, then you should've seen a negative percentage closing cost meaning WF would pay for a certain amount of fees for you.  I had closing cost credit since rates were much lower back 4-5 months ago.

It's way too late now.  Learning lesson for next time.
 
Just tell them you want to sign up for a bunch of credit cards, maybe they'll waive the fee.
 
Buyers pay for the appraisal, I've never heard of a lender paying for an appraisal.  It's a 3rd party cost that is passed on to the buyer.  Never heard of anyone negotiating the appraisal fee either as it is a on a sliding scale depending on the value of your home and whether it's a rental or primary residence.

The reason you aren't see any closing costs paid for by the seller on your escrow estimated statement is because you are only seeing the buyer closing costs.  You don't get to see the costs that the seller paid (they have their own closing costs).  The lender doesn't cover any costs normally, unless you get a credit on your loan pricing or if they F-up and give you a special credit. 
 
USCTrojanCPA said:
Buyers pay for the appraisal, I've never heard of a lender paying for an appraisal.  It's a 3rd party cost that is passed on to the buyer.
Click to expand...

CashCall paid for my appraisal.  This was on a re-fi but at the time, the terms were the same for new home purchase.

Technically, on the closing docs they listed it as a cost of the loan but they they gave "Lender Credit" in the same page that covered the entire amount.
 
aquabliss said:
USCTrojanCPA said:
Buyers pay for the appraisal, I've never heard of a lender paying for an appraisal.  It's a 3rd party cost that is passed on to the buyer.
Click to expand...

CashCall paid for my appraisal.  This was on a re-fi but at the time, the terms were the same for new home purchase.

Technically, on the closing docs they listed it as a cost of the loan but they they gave "Lender Credit" in the same page that covered the entire amount.
Click to expand...

You still technically paid for...like you said, cash call just covered the cost with a lender credit so you paid for it since you took a slightly higher rate to get a lender credit.  Appraisal is a buyer/home owner cost.  Remember the appraisal is done by a 3rd party company which is not part of the bank....just like title and escrow charges are 3rd party costs. 
 
Borrowers always pay the closing fees, no matter the lender, no matter what your loan officer says. The Loan Estimate shows "X" costs, "Y" rate, and "Z" lender credit.  "X" is a constant. The other factors - rate and credit - are variable. It really is no more than that. If the rate goes up, your credit increases and your costs are covered, giving the impression that the lender is paying the fees. The borrower is over time with a higher payment. Its possible to find a lower "X" factor, but more often than not the rate will be elevated.

My .02c

SGIP
 
Soylent Green Is People said:
Borrowers always pay the closing fees, no matter the lender, no matter what your loan officer says. The Loan Estimate shows "X" costs, "Y" rate, and "Z" lender credit.  "X" is a constant. The other factors - rate and credit - are variable. It really is no more than that. If the rate goes up, your credit increases and your costs are covered, giving the impression that the lender is paying the fees. The borrower is over time with a higher payment. Its possible to find a lower "X" factor, but more often than not the rate will be elevated.

My .02c

SGIP
Click to expand...

This is why the APR figure was created - an attempt to identify the total "cost of credit" in one simple rate. No consumers understand what an APR is, which is one reason why it's been relegated to the final page of the Loan Estimate.
 
USCTrojanCPA said:
Buyers pay for the appraisal, I've never heard of a lender paying for an appraisal.  It's a 3rd party cost that is passed on to the buyer.  Never heard of anyone negotiating the appraisal fee either as it is a on a sliding scale depending on the value of your home and whether it's a rental or primary residence.

The reason you aren't see any closing costs paid for by the seller on your escrow estimated statement is because you are only seeing the buyer closing costs.  You don't get to see the costs that the seller paid (they have their own closing costs).  The lender doesn't cover any costs normally, unless you get a credit on your loan pricing or if they F-up and give you a special credit.
Click to expand...

They F-up more often than not and it's up to the borrower if they want to demand a credit. Through the process I will actually keep a timeline of events and documentation. After the loan closes, I review it to see what 'wrongs' were committed and how upset I am over it. If it's egregious enough, I escalate requesting a credit of $X. It takes some work but it's worth it if the lender takes it to heart and tries to improve.

Apologies if this is slightly off-topic...
 
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