We Didn't Like. Lenders are required by Respa, the Real Estate Settlement Procedures Act, to give you a good-faith estimate of your closing costs when you hand in your application, and extra charges are a violation of the law. But some banks try to sneak them in anyway. I also see strange fees, like a 'jumbo warehousing' fee. Many don't refer to any real service, but I see them on settlement papers all the time.
Lenders tend to be very creative when it comes to fees.
Always ask for a detailed, itemized list of your estimated closing costs when you hand in your loan application. It's required by law. If it does not equal the principal you are borrowing, minus any points or interest paid upfront, ask your loan officer why. BACK TO THE TOP 6. We're in Cahoots With Your Real Estate Broker.