i recently contacted a real estate agent in regards to buying a house, he told me my credit score was average an that he could consolidate all my debts into one monthly payment with a fixed interest rate for a fee of 500 dollars. is this fee too high? i just want to make sure im not getting screwed here. thanx in advanced
You are getting screwed. You went in to buy a house and he is trying to sell you a debt consolidation loan? Get a new agent! PS: Go to a savings and loan, credit union, or mortgage broker to find out how much of a house you can afford.
You are getting screwed. First he/she is not a loan expert but a real estate agent. Any good one would recommend you to a professional then go from there without getting involved on that side of the transaction. I am an Office Manager for Prudential Northwest Properties. Act like any john Doe and call up another agency and see what they say.
First, ask him what your score is. Second, what is the loan being secured against? The fee is perhaps reasonable - depends on situation... Third, shop around, that will tell you if it is, areas vary in fees as well, so what might be reasonable where I am, might not be where you are - get a quote with at least 2 more people - Check with Loan Officers or Mortgage Originators, not Real Estate Agents.
Well, Yeah the fee is sort of high, seeing as the Interest rate pays for the consolidation in itself. Go with Your local bank, and ask for a loan to consolidate your bills, There's no fee, just an interest rate, that is built into the entire loan. For example, if your loan was for 5,000 dollars, it might be 6,458 dollars, because of the interest, You might pick a 3 year loan for 180 a month. It really depends on your credit score, and how much debt.... but never go with a reaestate agent... If he asked you for that fee of 500 dollars, you might wnat to go to a differant Real Estate agent. a good realestate agent, will build in your Fees, into the Sellers rate. For instance. if the seller is selling a house for 135,000 dollars (rare). and a realestate agent goes in, and shows it to you, he SHOULD look around to see what he can use against the seller, say if it needs a new furnace, or a new kitchen or something, he will tell the seller, (we'll offer you 125,000 and we want you to pay 10,000 for such and such repairs.) So you will only pay 115,000, and the seller will end up paying the closing costs too. A GOOD realestate agent will do that for you.
