Fee sheets are definitely a must, but honestly, I’ve found even those can be a bit of a minefield. You’d think after years of doing this I’d be immune, but every new lender seems to have their own “interpretation” of what’s standard. I once had a lender try to sneak in a “processing review” fee that was basically just a renamed admin charge. When I called them on it, they acted like it was some regulatory requirement... until I pointed out none of the other lenders had it.
I always tell folks—don’t just look at the dollar amounts. Pay attention to wording. If you see two fees that sound similar, ask why you’re being charged for both. Sometimes it’s just double-dipping with fancy names.
One thing I’ve started doing is asking for a full breakdown before I even get too deep into negotiation. If they’re cagey or slow to provide it, that’s usually a red flag for me. And honestly, I’m not afraid to walk away if something feels off. There’s always another lender out there.
Another thing—watch out for those “third-party” fees. Title, appraisal, legal, etc. Some lenders will pad these or insist on using their own vendors at inflated prices. I try to negotiate the right to use my own contacts where possible, or at least get quotes up front.
It’s tedious, yeah, but I’d rather spend an extra couple hours upfront than get hit with surprise costs at closing. Commercial deals are tight enough as it is these days... no need to hand over more than you have to.
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I hear you on the fee sheet headaches. It’s wild how creative some lenders get with their “required” charges—processing review, admin, documentation... it’s like they’re inventing new ways to get paid. Had a client last year who got hit with a “compliance facilitation” fee. Translation: paperwork shuffle. We pushed back and, surprise, it disappeared.
Here’s my step-by-step for keeping your sanity (and your wallet) intact:
1. **Ask for a full itemized fee sheet up front**—not just the summary page. If they send you something vague or loaded with jargon, keep pushing until you get real explanations. If they can’t explain a fee in plain English, that’s usually a sign it doesn’t belong.
2. **Compare line by line across lenders**. I know, it’s tedious, but sometimes the same thing is called three different names by three different banks. I literally keep a spreadsheet now just for this reason.
3. **Don’t be shy about questioning fees**—even if you feel like a broken record. I’ve had underwriters quietly admit certain charges are “just standard practice” but not actually required.
4. **Third-party fees are the Wild West**. Lenders love to steer you toward their preferred vendors (who just happen to charge more). If you have trusted contacts for appraisal or title work, insist on using them or at least get competing quotes.
5. **Negotiate everything**—and I mean everything. Even if a lender says something is non-negotiable, ask anyway. Sometimes they’ll shave off $500 here or there just to keep things moving.
6. **Watch out for “rush” or “expedite” fees** at closing if timelines get tight. These pop up more often than people think and can really add up.
I’m with you—it takes more time upfront, but I’d rather spend an afternoon playing detective than fork over thousands because of some creative wording buried on page seven of the closing statement.
And yeah, if something feels off or they’re dodgy about details... trust your gut and walk away. There’s no shortage of lenders out there trying to win business right now.
Funny thing is, after all these years, I still find new “surprise” fees every so often—keeps me humble (and maybe a little paranoid). But hey, better safe than sorry when the numbers start stacking up...
Totally agree on the “creative” fees—had a lender try to sneak in a “courier fee” for emailing docs. Here’s what worked for me last time:
- Get every single fee in writing before you sign anything. If they won’t, walk.
- Don’t just compare rates—compare total closing costs.
- Push back on anything that sounds made up or vague. I’ve had them drop stuff just because I asked.
- If you’ve got a relationship with a local bank or credit union, sometimes they’re more upfront (and less sneaky) than the big guys.
Honestly, if something feels off, it probably is. Trust your gut and don’t be afraid to bail if they get cagey.
I get where you’re coming from on the fees—some of them really do seem made up. But I’ve actually had a few good experiences with bigger lenders, especially when it comes to commercial loans. Sometimes they have more flexibility or can offer better terms if you’re willing to negotiate a bit. Have you ever tried asking for a breakdown and then seeing if they’ll match a competitor’s offer? I’ve seen lenders drop fees or adjust rates just to keep the deal. Local banks are great, but sometimes their approval process drags on forever... ever run into that?
Bigger lenders definitely have some wiggle room, especially if you’re persistent. I’ve actually seen a client bring in a term sheet from a competing bank and suddenly the “non-negotiable” origination fee just... disappeared. It’s almost like some of these fees are just there to see if you’ll notice.
That said, I totally get the frustration with local banks dragging their feet. There was this deal last year—small office building refi—and the local credit union took nearly two months just to get through underwriting. Meanwhile, a national lender swooped in and closed in under 30 days. The trade-off was slightly higher rates, but the client was happy to avoid endless paperwork limbo.
Local banks are great, but sometimes their approval process drags on forever... ever run into that?
All the time. Sometimes I wonder if they’re still using fax machines back there. But, on the flip side, I’ve seen local banks get creative when big lenders wouldn’t budge, especially for unique properties or quirky business models. Guess it comes down to what you value more—speed or flexibility.
