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Call us crazy, but you sure would think that people who call themselves “experts” would actually know a bit about what they are talking about before writing and publishing an article. We see this far, far too often; people who really do not have a clue, yet think they do (hey, that rhymes).
This is a classic example. This article is about mortgage fees you should “beware of”. The first one on the list is Processing Fees. Although we have seen excessive processing fees, and lenders can/will run this up to make it look like you are getting a better deal because you are not paying points (but they get it in this manner, as an example), this fee is very common. We charge a processing fee on most our loans because that is money we actually use to pay our Processor (which, in our opinion, is the most critical aspect to any process). So this is not a random fee thrown out there for fun (as it can be with many other lenders). But it is, admittedly, a fee we have complete and total control over.
The problem with this authors article is they equate processing fees with underwriting fees, as an example. That is like comparing cats and dogs. OK, they are both animals but they are not both types of cats. One is a cat; one is a dog. An underwriting fee is something that, get this, the lender charges to underwrite the loan. We have zero control over this fee. It is what it is, and it must be paid to get the loan from that lender. EVERY lender has an underwriting fee, although it is often called an Administration Fee. This author speaks of “application fees” like they are normal and expected. We have NEVER charged this fee. Again, some lenders do this all the time to try and get you to commit to them. But this is a great example of why consumers get so stinking confused…because people like this write articles that are so misleading and not a “full picture”. As a result, nobody knows what to believe.
There is so much garbage in this article that we could go on and on. Everyone of these fees to “beware of” are written in such an uneducated, uninformed way it is amazing it gets published. For real advice that is true and accurate stope reading this type garbage and call us instead.
As we have said many times before, the bottom line is you MUST let us educate you as to the realities of this business. Lenders are not worried about you understanding things. They are, however, worried about getting you closed as quickly as possible so they can move on to the next person. We could not possibly be more opposite in this manner. Of course our goal is to get you through as quickly as is required or desired. But you have got to understand how this all works and what you are getting. Otherwise, like we see way too often, you will think you are getting a better deal and, in reality, you are getting hosed. Call us at 830-9685 and we will walk you through it.