I find that many barrowers ask two basic questions when considering a home loan, â€œWhat will my interest rate be and what will my monthly payment be?â€ These are good questions, but they must be only two of many questions that should be asked.
Home loans often entail many fees, such as loan origination or underwriting fees, brokerage fees, transaction fees, settlement fees, and various other fees. Every lender should be prepared and willing to provide an estimate of their fees (mortgage fees worksheet) and any hesitation to do so, should indicate a RED FLAG!
Many fees may be negotiable with most lenders and some fees are paid when you apply for a loan, such as application and appraisal fee; however, most fees are paid at closing (closing costs).
In any case, borrowers should also ask what each fee includes, and an explanation of any fees not understood should be provided.