BOSTON ( MainStreet) -- Homebuyers and refinancers can save potentially hundreds of dollars or more on their mortgages if they make sure their banks throw out "junk" fees."'Loan-application fee,' 'processing fee,' 'funding fee' -- lenders come up with so many names," says Polyana da Costa, senior mortgage analyst at Bankrate.com ( RATE). "Every lender will charge you some fees for a mortgage,
Every lender must by law give you a form called a "Good Faith Estimate" of closing costs within three days of taking your loan application. The bank must follow up with a "HUD-1" form of final costs at least 24 hours before your scheduled loan closing. Lenders use standardized forms for the HUD-1 and Good Faith Estimate so it's easy to see which fees the lender is charging. On the Good Faith Estimate, look at sections titled Our origination charge, Required services that we select and Required services that you can shop for. On the HUD-1, look at items in the sections titled 800. Items Payable in Connection with Loan and 1100. Title Charges.