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Maxine, Home Buyer in Portsmouth, VA

what is a document review fee in a good faith estimate?

Asked by Maxine, Portsmouth, VA Fri Dec 28, 2007

Is it necessary? What is the average cost of the fee?

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Hello Maxine. A document review fee is charged by the lender as part of the loan origination process. It's the fee that's charged for reviewing the documents necessary to fund the loan. Many times the fee is just part of the loan origination fee and not itemized separately which makes it more difficult to say what the average fee is. I have seen a fee as high as $175. In the eyes of the lender, the fee is necessary to ensure quality control as the lender wants to make sure that the loan is only funded if all the paperwork meets the lender's underwriting criteria. In the eye of the buyer, the fee is of course usually considered too high and unnecessary. I hope this helps.
Web Reference: http://www.theMLShub.com
2 votes Thank Flag Link Fri Dec 28, 2007
Ute Ferdig -…, Real Estate Pro in New Castle, DE
MVP'08
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that is what I believe they refer to as junk fee. I dont think that is charged on all loans.
0 votes Thank Flag Link Fri Dec 28, 2007
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