Lenders Fees

 

How much is too much? With mortgage closing costs, it's hard to tell.

Lenders, brokers and third-party providers of closing services charge all kinds of fees to mortgage hunters. And because those fees vary widely from state to state, market to market and even lender to lender, consumers can have a tough time figuring out whether their lender is giving them a fair shake. 

 

Consumers trying to make the best of the less-than-ideal, mortgage-shopping world will find Bankrate.com's survey useful. It contains information on three of the four major closing-cost categories: lender/broker fees, third-party fees and government fees.

 

Lender/broker fees include charges for document preparation, underwriting and origination, while third-party fees include charges for title searches, flood certifications, appraisals and the like. Government fees include recording taxes and other charges assessed by local and state agencies.

Borrowers will find information on the first two categories the most useful. Lender/broker fee information is helpful because "doc prep" fees and other similar costs are negotiable. Borrowers who know what lenders are charging, on average, to process loans can determine if they're being overcharged and, if so, demand lower prices.

 

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