Totally agree with you on local lenders being more transparent. I've seen this play out quite a bit with my clients. Here's a quick rundown of what I've noticed:
First, big lenders often have standardized fee structures that aren't always clear upfront. They might toss in things like "processing fees," "underwriting charges," or even vague "administrative costs." When you ask about these, the answers can be pretty vague—almost like they're hoping you'll just give up and move forward.
Local credit unions or smaller banks usually have simpler fee structures. They're more likely to walk you through each item step-by-step, explaining exactly what each charge covers and why it's necessary. Plus, since they're community-based, they rely heavily on reputation and referrals—so transparency is key for them.
One small caveat though... not every local lender is automatically better. I've run into a few smaller outfits that weren't exactly transparent either. Bottom line: always ask questions, request detailed breakdowns, and don't hesitate to compare multiple loan estimates side-by-side before committing to anyone.
Yeah, I've noticed the same thing. When I refinanced last year, the big bank I initially talked to kept slipping in random fees without clear explanations. Switched to a local credit union—way clearer, but still had to double-check everything carefully... trust but verify, right?
Had a similar experience when I closed on a duplex last spring. Thought I'd seen it all, but nope... there was this mysterious "document preparation fee" that popped up out of nowhere. When I asked about it, the rep literally paused and said, "Uhh, it's for preparing documents?" Gee, thanks for clarifying. 😂 Definitely pays to comb through every line—twice.
Haha, I feel your pain—had something similar called a "courier fee." Apparently emailing PDFs is now considered courier service...who knew? Definitely makes you wonder how creative they can get naming these fees.
Yeah, I ran into something called a "document prep fee"—basically charging me extra for paperwork they had to do anyway. Makes you wonder if they just brainstorm random names to justify padding the bill...
