Junk fees are unnecessarily high fees associated with your closing costs that serve no purpose other than to create additional revenue for the lender. Often, these charges are unexpected and unexplained by the lender.
Being able to identify and dispute junk fees in your good faith estimate could save you hundreds, if not thousands, of dollars.
Good Faith Estimates Are Prone To Change
When reviewing your good faith estimate, it is important to remember that some of the costs shown there are prone to change. For example, you can shop for home insurance and the home inspection, which could lower your fees. Putting a higher down payment on the home can also help lower fees by removing PMI.
Ask Your Lender To Specify What Each Fee Covers
Never be afraid to ask questions! After you have reviewed your good faith estimate, ask your lender about the charges and have them specify what each fee covers. Remember, if you have good faith estimates from different lenders, their prices will vary.
If there are fees that have names such as “document preparation fee”, “funding fee”, and “verification of employment fee” you have the right to challenge these. In addition, origination and broker fees are one in the same and should not be listed separately.
Hire The Expert Agents From The Merchant Of Homes Team
At Merchant of Homes we want you to find the home you love. That is why our expert agents will always work closely with you to guide you through the home purchasing process. We are more than happy to answer any question you may have, keep you safe from scams, and schedule property tours.