CONFUSED ABOUT LOANS THAT DON'T FIT THE BOX
Interesting point about the “processing” fee being negotiable. I’ve seen that happen, but I’d caution against assuming every fee is just tacked on for profit or that it can always be waived. Sometimes those charges are tied to actual third-party costs, especially with non-traditional loans or lenders who work outside the standard Fannie/Freddie guidelines. I’ve had clients push back on certain fees, only to find out they were legit—like courier charges or wire transfer fees that the lender really does have to pay out.
That said, I do agree it’s smart to question anything that looks odd or vague. But I’d also say, don’t expect every lender to fold just because you ask. Some of them are pretty rigid, especially with loans that don’t fit the usual mold. It’s a bit of a mixed bag... sometimes you get lucky, sometimes you don’t. Just don’t want folks to go in thinking every fee is up for negotiation, or they might end up disappointed.
Just don’t want folks to go in thinking every fee is up for negotiation, or they might end up disappointed.
I get where you’re coming from, but I’ve actually had some luck pushing back even on fees that seemed “fixed.” Especially with smaller lenders or credit unions, sometimes they’ll budge if you ask nicely or show you’re shopping around. I’m not saying it’s a guarantee, but I wouldn’t write it off either. Worst case, you ask and they say no… but sometimes you save a couple hundred bucks. Worth a shot, in my book.