Is it normal to pay a up front fee for under writing for a commerical refinace it is with private lening

When dealing with Commercial or Hard Money lenders, there are no "Rules"... (there are very few laws that pertain to properties that are not residences... so with any form of commercial real estate or investment properties, then lenders can have their own "rules") . So to answer your question, yes... it is common for them to ask for upfront fees to be paid. Because of the time involved in underwriting and processing a file, many commercial and or hard money lenders require some payment up front to initiate a loan. WilliamAcres.com

I doubt it was for underwriting. It is very common to collect an upfront fee typically called a Due Diligence Fee or a Loan Retainer Fee. There is a great amount of work that is done on a commercial deal just to get it to the point of being able to get the deal submitted to underwriting. The upfront fee is simply to cover expenses and time spent on the deal. The originators fee/ commission is typically paid at closing. ENG Lending, A Division of Bank of England, always puts your best interest first. We would appreciate the opportunity to serve you. Please visit us at www.cincinnatimortgagerate.net. You will soon find that we are so much more than a Mortgage Banker; we are a company that is dedicated to empowering our clients and referral partners. Don't forget to visit our Facebook Fanpage at http://www.facebook.com/pages/ENG-Lending-Cincinnati/171183536269710?sk=wall Or Call Anytime 513-403-6260

Commercial loans are not regulated by RESPA. Therefore, upfront fees are very common on commercial loans especially with private lenders.

Because commercial loans are for business purposes, and in theory, business people are supposed to be savvier than a regular consumer, there are fewer rules like the ones designed to protect consumers. Yes it is very common for all commercial loans to have up-front fees for all kinds of things, Application fees, Processing fees, Analysis fees, Underwriting fees, etc. Before you start working with a private money lender, I would advise you to contact your local community bank. Many community banks are big SBA lenders. Because these loans are backed by the Small Business Administration, mnay times the loan terms and requirements are much less onerous than those charged by private commercial lenders. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Angela- I would run away from a Private Money Lender that charges an Upfront fee. In California we have several - none - charge anything upfront. We usually fund these loans in less than two week.Commercial Lenders like Banks & Insurance Companies may charge a fee- but only after they provide a Letter of Interest (LOI). ...Good luck- Rudi