When applying for a hard money loan??

[Jimmy Warr]

When applying for a hard money loan is it typical for someone to ask for a small fee upfront? I received the below email after submitting an application to a hard money lender: "There are no upfront fees, but there is a Good Faith payment in case we do get you funded you don't waste our time by not going through with the deal. If you are not funded you will be refunded 100%." Memphis TN

[Jonathan J. Miller]

It's common in the industry.  As a Brokerage we have a small fee to do the shopping for our clients to find the best deal out there for their specific scenario.  Brokerages and individuals that do business with the lenders often always get the better terms.  Rate, fees, points are all negotiable as Douglas Skipworth noted in the string above.

I have seen a deposit asked for and then it is refunded over the course of a few deals as well.

I hope this was helpful

~Jonathan