Closing costs can be confusing. Here is a breakdown of what you should expect to see on your Loan Estimate.
Allowable Fees
-
Origination Fee: The cost of processing your loan.
-
Appraisal Fee: Paid to the third party who values the home.
-
Credit Report Fee: The cost to pull your history.
Watch Out For “Junk Fees”
Beware of items like “Processing Fees,” “Underwriting Fees,” or “Document Preparation Fees” that seem excessively high. These are often profit-boosters for the lender.