That “industry standard” excuse always feels like a red flag to me, too. If they can’t explain what I’m paying for, I start wondering what else they’re glossing over. I once had a lender try to pass off a “processing fee” that was double what others charged—when I pressed, all I got was the same canned answer. Out of curiosity, has anyone actually gotten a straight answer on those weird “miscellaneous” fees, or is it always smoke and mirrors?
If they can’t explain what I’m paying for, I start wondering what else they’re glossing over.
That’s honestly the right instinct. I’ve seen “miscellaneous” fees pop up on loan estimates and, yeah, sometimes it’s just a catch-all for stuff that should be itemized. Once had a client ask about a $900 “admin fee”—I called the lender directly and got a vague answer about “internal costs.” Not a great look. If someone can’t break down a fee in plain English, it’s usually not a good sign. Sometimes it’s legit, but transparency shouldn’t be optional.
Honestly, I once got a quote where “processing fee” showed up twice—one for $450 and another for $300. When I asked, the broker just mumbled about “different departments.” Felt sketchy. If it’s not clear, I walk. No shame in asking questions.
I get the hesitation, but sometimes those “duplicate” fees are legit—depends how the lender structures things. I’ve seen cases where one’s for underwriting, the other’s for admin, just poorly labeled. Still, if they can’t explain it clearly, that’s a red flag. Ever had a quote where the fees actually made sense after digging in?
Had a lender once who broke out “processing” and “document prep” as two separate fees—looked fishy at first. Turns out, after some back-and-forth, they actually had different teams handling each step. Still felt a bit like splitting hairs, but at least it wasn’t total nonsense. I always wonder if they just hope nobody asks...
