Should I pay the processing fee even though I did not take the loan?
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I applied for a home loan but I did not take it. The mortgage broker charged me $830 for processing the loan and getting it approved. Should I pay this amount or can I get any concession?
Should I pay the processing fee even though I did not take the loan?$830 doesn't even remotely resemble their actual costs. In most states, it's illegal to accept an upfront fee to apply for a loan and make it non-refundable. There are exceptions though.
They can generally be paid upfront for actual 3rd party costs, such as appraisals, credit reports, fees for the underwriting systems, etc...
Was there ever an appraisal done? If so, if you don't pay for it, the broker has to. And not the company, the actual person you dealt with. That's one of the fun parts about this job, losing hundreds of dollars on loans that didn't close.
Why didn't you take the loan? Find a better deal elsewhere? Change your mind? Felt you were getting screwed?
If you simply changed your mind after being offered a fair deal, it'd be nice of you to offer to pay their actual 3rd-party expenses. Ask for an accounting. If there was an appraisal done, that's easily $300-500.
If you haven't paid him anything yet, you likely have zero legal obligation to do so. It's part of our cost of doing business. Sometimes we make money, sometimes we lose money. Just like shoplifting and food spoilage, we all end up paying a small premium to offset those losses.
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