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Mortgage Brokers Have a More Difficult Time Quoting Accurate Closing Fees than Mortgage Bankers Do.

The reason for this is that your mortgage broker may not yet know where your loan will end up. Just as mortgage lenders can have different lender fees, so can wholesale lenders. In fact, wholesale lenders have different sets of fees for the very same reason that mortgage brokers or bankers have different fee charges: to make them appear different.

All in all, the fees may not be called the same thing, but you can bet that they'll be there. Common lender fees, wholesale or otherwise, can include:

Processing. This charge covers the physical work it takes to push your loan through the approval channels. Common charge: $300. Underwriting. This is a fee charged to offset the costs associated with making sure that the loan application conforms to the lender's approval guidelines. Common charge: $300-1400. Administrative. It's not clear what this fee does, but it's not an uncommon one. It's an official-sounding term that's really nothing more than a junk charge. Common charge: $200-$300. Application. This fee, when charged, is usually collected up front, at application time. Often this fee goes toward paying the appraisal or credit report charges, but it doesn't have to. Common charge: $300.

Rarely will you encounter every single one of these fees from the same lender; instead, you will see a combination of them, and perhaps even some more creative ones. The important thing is not what a fee is or is not called, but what all the fees actually add up to. Some lenders charge an administrative fee and some don't.

That's why a mortgage broker may not be able to be as accurate in quoting lender fees unless she knows ahead of time specifically who that loan will go to. If your broker knows who your lender will be, you'll get an accurate quote. If the broker doesn't know or hasn't decided, it's possible that the estimate will be off by a few hundred dollars—at least, until your final lender is identified.

 
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