Couldn’t agree more with the “ask even if it feels awkward” advice. It’s wild how many lenders just drop a fee when you question it—like, if you can take $75 off a “document review” just because I asked, was it ever real? Or just a test to see if I’d bite? I’ve been through the wringer with those “loan origination adjustment” or “rate lock extension” fees, especially when my credit was less than perfect. Half the time, it feels like they’re just seeing what they can get away with.
You nailed it on the automation thing too. It’s almost laughable—everything’s digital now, but somehow the “technology fee” goes up every year. Shouldn’t it be cheaper when they’re not paying someone to shuffle paper around? I get that compliance and storage aren’t free, but the numbers don’t add up.
I tell anyone who’ll listen: don’t let them guilt you into silence. Lenders act like you’re being difficult if you push back, but it’s your money on the line. One time, I literally had a lender sigh and roll their eyes when I asked about a “processing fee.” Guess what? It disappeared after I pressed for details.
The APR is important, but it’s just one part of the story. The Loan Estimate is where they sneak in all those creative charges. If you’re not sure about something, there’s nothing wrong with saying, “Explain this to me.” If they can’t—or won’t—explain it, that’s a red flag.
Bottom line: you’re not being a pain by asking questions. You’re being smart. If more buyers pushed back, maybe these junk fees would finally disappear... or at least get harder to hide.
That “technology fee” line gets me every time.
Couldn’t agree more—if the process is automated, costs should be dropping, not climbing.“everything’s digital now, but somehow the ‘technology fee’ goes up every year.”
A few quick things I always tell clients:
- Always ask for a breakdown of every single fee on the Loan Estimate. If they can’t explain it, that’s a problem.
- Compare at least three lenders—some will drop fees just to stay competitive.
- Don’t get fixated on APR alone. Sometimes a slightly higher rate with lower junk fees is actually cheaper over the first few years.
- If you see “processing,” “admin,” or “doc prep” fees, ask what they actually cover. Sometimes they’re just padding.
One time, a lender tried to charge me a $95 “courier fee”—for emailing a PDF. When I asked, it vanished. Just goes to show, if you don’t ask, you pay for nothing.
Tech fees really are the wild west these days. I’ve seen “e-signature” fees pop up too—like, we’re in 2024, digital signatures are just part of doing business, right? I always tell folks to look at the “origination” line as well. Sometimes lenders lump a bunch of random stuff in there and hope you won’t notice. If you ask for clarification, you’d be surprised how often things suddenly get “waived” or “reduced.”
One thing I’ve noticed in Dallas: some lenders will try to justify higher fees by saying it’s “standard in Texas.” Not always true. There’s no universal standard, just what they can get away with. Comparing lenders, like you mentioned, is huge. And don’t forget to check if title companies are tacking on their own tech or “archive” fees too.
Honestly, I wish more buyers knew it’s all negotiable. If something seems off, push back. Worst they can say is no... but usually, they’ll budge.
You nailed it with the “standard in Texas” line—heard that one more times than I can count. Last year, I was refinancing a duplex and the lender tried to sneak in a $250 “processing technology” fee. When I questioned it, they dropped it without blinking. It’s wild how much is just smoke and mirrors. I’ve even seen title companies tack on a “courier fee” for sending digital docs... like, what courier? At this point, I just assume every line item is up for negotiation unless proven otherwise.
I get where you’re coming from—there’s definitely a lot of junk fees out there, and some of them are just plain nonsense. But I’ve also run into situations where not every fee is as negotiable as it seems. For example, I tried to push back on a “document prep” charge once, thinking it was just another padded line, but the lender wouldn’t budge. They claimed it was a third-party vendor thing, not something they could waive. Maybe they were bluffing, but I couldn’t get them to drop it.
I guess my point is, while it’s smart to question everything (and I do), sometimes you hit a wall. Not every fee is smoke and mirrors—some are just baked into the process, even if they feel ridiculous. Still, I agree: always ask. Worst case, you get told no. Best case, you save a couple hundred bucks.
