Home Buying in Detroit>Question Details

Becky_spin, Home Buyer in Hazel Park, MI

I just received my good faith estimate and included are a few off the wall fees. Can you explain?

Asked by Becky_spin, Hazel Park, MI Thu Apr 16, 2009

Email fee - $60? Recording Fee- $70? Recording rocessing fee - $50? Processing fee - $395? Admin fee- $295? Underwriting Fee- $495? Remax compliance fee- $745? Lender's Coverage- $375? These all seem ridiculous. Other than the necessary underwriting fee..I just listed everything suspect because they seem redundant. Help!

Help the community by answering this question:


A few of these fees do seem to be unnecessary. However, Lender's Coverage - sounds like title insurance, which is mandatory if you are not paying cash. Recording fees pay for the title company to send your deed and mortgage to be recorded by the county. There is a fee for each page that is charged by your local county. Some of the fees can be waived, you just need to ask your lender - another option would be to get another good faith estimate from another lender - let them compete for your business... Good luck to you - I wish you the very best.
Linda Najar
2009 President, Western Michigan Chapter
Women's Council of Realtors
Greenridge Realty
0 votes Thank Flag Link Fri Apr 17, 2009
Believe me, I have. The only explanation I got from the lender was "that's what my company charges". So, I called the owner...he told me the same thing. They know they have me in a corner because I have to close or according to the agent I "lose the house". This company was assigned for me...I had no choice and found out about the additional charges just two evenings ago. My closing date is Monday and I'm just disgusted. They know I either pay the extra or I'm homeless and wasted the last 7 months of my life trying to own this house. Things I've learned - never allow the agent of the home you are buying be your agent, never believe anything a bank tells you, never rent before owning, get an attorney long before it hits the fan and never allow the agent choose your lender. It is a back scratching contest and to me sounds illegal. Also, never believe that closing costs and pre-paids will be covered because they change last minute and you won't be told until you are expected to fork over the extra couple thousand.
1 vote Thank Flag Link Fri Apr 17, 2009
Yeah, the sad reality is that even though we'd like to suggest that all agents/lenders/people in this business are good people, that's not always the case.

I normally try to avoid a dual agency situation at all costs -- when I see people saying they only call the listing agent on homes b/c they think it saves them money -- I cringe -- after all, a buyer agent is FREE, you know?

Aside from that...have you tried another lender? There are lending rules in the state that any company has to adhere to. Why did your closing costs/pre-paids change?

I also think that if a client has a good agent, an attorney isn't necessary. All of the documentation I use is required by the state (even Bank addendums can't really be changed) and have to be part of the sale.

If the deal falls apart and you don't have the money, you don't have the money. Ask the agent what he's willing to do if you're unable to come up with the cash to complete the deal. Just a thought. I'm sure he/she would rather make sure the deal close than not...
0 votes Thank Flag Link Fri Apr 17, 2009
There's always the obvious solution.

"Ask the lender to justify these fees".
0 votes Thank Flag Link Fri Apr 17, 2009
Alan May, Real Estate Pro in Evanston, IL
Most offices charge a compliance fee. If you're buying a foreclosure or REO, you're also likely paying a $395 bank processing fee. Look in the listing info for details on that one.
0 votes Thank Flag Link Thu Apr 16, 2009
The problem here is....I was pre-approved by Flagstar and then a week ago my loan officer screwed up some paperwork and somehow I got denied. It seemed irrevocable so quickly I was forced to switch to a new company that works closely with the real estate office. I supposedly have this set date I have to close and everybody is acting like if I don't, I may lose the house. With this new company there are tons more fees though and nobody will explain them. My loan officer simply says "that is what my company charges." No real explanation. As if "processing" or "admin" are self-explanatory. It seems fishy. Any other advice?
0 votes Thank Flag Link Thu Apr 16, 2009
I'd ask for them to get rid of the E-mail and Admin Fees. Those are total junk fees that I had my lender remove. Also, find out what that compliance fee is... Sounds odd?
0 votes Thank Flag Link Thu Apr 16, 2009
Pretty normal fees, in my opinion. Not much you can do about them to get rid of them other than paying cash.
0 votes Thank Flag Link Thu Apr 16, 2009
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