At least with conforming loans, you know what you’re getting into—even if it’s a paperwork marathon.
Haha, “paperwork marathon” is spot on. I swear my hand cramped up halfway through my last closing. But hey, at least you can see where every penny goes. Has anyone actually had a surprise fee pop up at the last minute? Or is that just one of those mortgage horror stories people tell to scare newbies?
I’ve seen a couple of “mystery” fees show up right before closing, but usually it’s just stuff that wasn’t explained well upfront—like courier charges or some random processing fee. Nothing huge, but it’s annoying. Honestly, with conforming loans, the disclosures are pretty clear compared to some of the non-conforming stuff I’ve seen. Still, I always tell people to read every page, even if your hand’s about to fall off. You never know what might sneak in there.
Still, I always tell people to read every page, even if your hand’s about to fall off. You never know what might sneak in there.
Totally agree—those “junk” fees can be sneaky. Even with conforming loans, I’ve seen lenders try to slip in a doc prep fee or something vague. Ever had a client push back and actually get one of those dropped? Curious if anyone’s had luck negotiating those down, or are they pretty much set in stone?
Honestly, I’ve seen those “junk” fees dropped more often than people think, but it really depends on the lender and how much leverage you’ve got. Some are non-negotiable, but others—like admin or processing fees—are just padding. I always tell clients to question everything on that closing disclosure. Even if you can’t get it removed, sometimes they’ll at least lower it a bit if they think you’re shopping around. It’s not always set in stone, despite what they say.
I’ve definitely noticed the same thing—those “junk” fees aren’t always as set in stone as lenders like to pretend. This part really rings true:
I always tell clients to question everything on that closing disclosure. Even if you can’t get it removed, sometimes they’ll at least lower it a bit if they think you’re shopping around.
It’s wild how much of the mortgage process is just... negotiation theater. My last refi, I pushed back on a $450 “processing fee” and suddenly it was chopped in half. Made me wonder what else was padded in there. But here’s where I get a little skeptical: not every lender is flexible, and I’ve run into a few who flat-out refuse to budge, no matter how much I push or threaten to walk. Maybe it depends on how busy they are, or if they think you’re serious about leaving.
On the conforming loan angle, I will say one thing—they tend to have more standardized fees than some of the weird “portfolio” or non-conforming products out there. At least with Fannie/Freddie-backed stuff, there’s a little more transparency (in theory). But even then, you’ve got to comb through every line item. Why is there an “underwriting fee” AND a “document prep fee”? Who’s actually doing all this work? Feels like they just slap a new name on the same service sometimes.
Do people actually get those fees waived entirely, or is it mostly just a matter of getting them reduced? In my experience, best case scenario is maybe one or two get knocked off if you make enough noise, but you’re never walking away without paying at least some of them.
Curious if anyone’s ever had luck with smaller credit unions or local banks—are they any better about not tacking on these extra charges? I’m always wary when something looks too good to be true on the rate sheet... usually means they’re making it up somewhere else.
