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Buying a home is not a simple transaction. Expect to pay several fees associated with your home purchase and home loan.
Fees include home loan origination fees, broker fees and fees for your transaction, settlement and closing. Don't be intimidated by the fees if you don't understand them - ask before you pay.
Get an idea of the fees when you first sit down with a broker or lender who should be able to estimate your fees. Find out what each one covers. Don't be afraid to negotiate lower fees as you start the process of getting a home loan.
Expect upfront fees, such as appraisal fees or fees to process your home loan application. Ask for an explanation of any fee you do not understand. Several costs sometimes are combined into one fee, so you may not know what you are paying for unless you ask.
There are ways to avoid fees. You can borrow the money needed to cover fees. But it likely will increase your home purchase loan. Lenders also advertise no-cost home loans, but they usually come with higher mortgage rates.