Kind of makes you wonder how much of this stuff is just made up as they go along.
- Couldn’t agree more. Lenders love to sneak in “junk” fees, and half the time, they’ll waive them if you push back.
- Comparing Loan Estimates is smart, but I’ve seen Closing Disclosures that don’t match up either. It’s frustrating.
- Conforming loans do usually win on rate and predictability, especially compared to jumbo or portfolio loans.
Curious—did you ever get a straight answer from the lender about what that $700 review fee actually covered? Sometimes I think they just hope nobody asks...
Title: Why Conforming Loans Are a Great Option for Homebuyers
That $700 “review fee” is classic. I’ve seen lenders try to pass off all sorts of vague charges—processing, admin, “courier” fees (in 2024, really?). The first time I bought, I just assumed it was all legit, but after my second home, I started questioning every line. Funny how quickly some of those fees disappear when you ask for a breakdown or threaten to walk.
As for the Loan Estimate vs. Closing Disclosure mismatch, that’s been my biggest gripe. You’d think with all the regulations, they’d have to match up, but nope. I had a lender try to sneak in a $400 “document prep” fee at closing that wasn’t on my estimate. When I called them out, they acted like it was a computer glitch. Sure...
Conforming loans definitely have the edge on rates and predictability, but I’ve noticed even those aren’t immune to the fee games. At least with conforming, you’re dealing with a more standardized process, so it’s easier to spot the nonsense. When I looked at a jumbo loan last year, the fees were all over the place—no rhyme or reason. I bailed pretty quick.
Has anyone actually managed to get a lender to put in writing what each fee covers, in plain English? I’ve tried, but all I get is legal jargon or some generic “it’s required by underwriting.” Makes you wonder if half these fees are just padding their margins. Maybe it’s just me, but I feel like the only way to keep them honest is to challenge everything, every time.
Curious if anyone’s ever had a lender refuse to remove a bogus fee—did you go through with the deal anyway, or walk? I’ve walked before, but it’s a hassle. Sometimes I wonder if they count on people being too tired to fight at the finish line...
Totally agree, those “required” fees can be so vague. Here’s what I do every time now: 1) Ask for a full itemized list of all fees up front. 2) Compare the Loan Estimate and Closing Disclosure line by line—literally print them out and highlight any differences. 3) For anything that looks off, I ask for a plain-English explanation (sometimes I’ll even email it so there’s a paper trail). If they can’t explain it, I push back or threaten to walk. Once, a lender flat-out refused to remove a $350 “processing” fee, claiming it was “industry standard.” I ended up switching lenders, which was a pain but saved me money in the end.
Has anyone tried escalating to a supervisor or using a mortgage broker to negotiate fees? Curious if that actually gets better results or just more runaround...
I hear you on the fee frustration. Those “industry standard” charges can be so murky, and it’s great you stood your ground. I’ve seen folks get some traction by escalating to a supervisor—sometimes it just takes talking to someone with a bit more authority to get a fee reduced or waived. Other times, you just get the same script repeated back, which is super annoying.
Mortgage brokers can be hit or miss. Some are awesome at negotiating fees because they know which lenders are flexible, but others just pass along whatever the lender says and don’t really fight for you. It kind of depends on how much hustle your broker has, honestly.
One thing I’ve noticed: when buyers push back (like you did), lenders sometimes “find” ways to lower costs, especially if they think you might walk. It’s definitely a hassle, but it’s worth it if you save money in the end. The paperwork side of conforming loans is already enough—no one needs extra mystery fees thrown in.
