I'm a real estate broker here in the Greeley Colorado area.   This blog probably won't help anyone with trying to buy a house or get a mortgage.  It's a simple question that I have for banks, mortgage brokers, and lenders.  

Why does a buyer have to pay closing costs to get a home loan? 

Yes I know people have to get paid.  Yes I know there are appraisal costs and I'm not arguing about that.   What I'm questioning is the origination costs, administrative costs, paperwork fees, filing fees and all that kind of junk.

The main reason I ask this is when you go to get a car loan there are none of these costs.  They are in the loan of the car.  You could go find a used $50,000 car and get a loan and not have to pay one cent for origination costs or administration costs.  They might bill a small filing fee or something, but nothing huge.   

But go try and get a loan for a $50,000 house and you will most likely pay $500 for an origination fee and you might get hit with a $500 administration fee.  Plus the hassle of the loan process to get that house.  Though I realize most of that hassle depends on the type of loan and HUD rules brought to us by our government to "help" everything be fair for everyone.   

A simple question.  There shoud be a simple answer shouldn't there?

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