Warning: check your closing costs BEFORE you sign

I was about to buy a $220k house in Phoenix and the lender listed $12k in closing costs. I crossed out half the junk fees and asked them to redo it. They dropped it to $6,500 after I pushed back. Has anyone else noticed lenders padding these numbers for first time buyers?

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claire9993mo ago

Crossed out half the junk fees"? Good luck getting funded. Lenders aren't charities.

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fisher.taylor3mo ago

People keep acting like lenders are just handing out money because they feel generous, but they forget lenders have to answer to investors and regulators too. If you cross out junk fees without showing you understand what they actually cover like processing and underwriting, you're just sending up red flags. There's a difference between negotiating fees that are inflated and blindly slashing every charge that has a vague name. Experienced lenders can spot that from a mile away and will just assume you're a high risk borrower who's going to be a headache down the road. Keep the junk fee fight for after closing when you've got the keys and can actually walk away if they play games.

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