Here at the myClosingSPACE.com blog I have discussed the issue of Junk Fees being tacked on to title insurance & closing costs. Many consumers don't realize they are being charged extra for legitimate fees or even paying additional tacked on fees. The fact is that many do not see these fees until they actually sit down to close and in many cases they do not understand that they are being overcharged because they have not educated themselves.

That's why myClosingSPACE.com encourages consumers to learn about title insurance and shop for the company that suits their needs. One major issue to look out for is Junk Fees. It is important to make sure that you get a guaranteed quote and all fees and charges are disclosed.

Don't Let your Title Company Pile on the Junk Fees

Do your research and make sure the charges you will have to pay are legitimate and they are within the proper range based on the requirements for your state. Again, there are legitimate fees which cover the costs associated with the work done by your title company. These can be jacked up in order to extract money from unsuspecting consumers. In addition there are simply Junk Fees that get tacked on for no other reason than to extract as much from consumers as possible. Here are some examples of both.

The following are legitimate fees but make sure that you are being charged a reasonable amount of money and being overcharged.

• Insurance Premiums: Of course the premium is a legitimate fee. It is a fee to cover the title insurance premium. Some companies will pad this fee well above what the actual premium should cost. Most states set the rates but since many consumers are unaware of this they will overcharge. Look up your states guidelines and find out what the premium should be.
• Title Search Fees: The title search is a labor intensive process and is an important aspect of title insurance. It ensures that the house you are buying or refinancing does not have any liens or judgments against it. Look at the details when you get a quote or estimate and make sure you are being charged for the title search and there are not additional fees tacked on to this.
• Settlement Fees: This fee should be around $300-$400 and there may be discounts if the closing is held at the settlement company office or another select place. Again, there are fees that can be tacked on to this that are not necessary and would be considered Junk Fees.
  

The following are fees that can be tacked on simply to get as much money as possible. These can be avoided and in many cases are simply Junk fees. If any of these fees show up you should question the company who provided the estimate.

• Municipal Search Fees
• Wire Fees
• Copy Charges
• Travel Mileage for Closer
• Overnight Charges
  

We encourage consumers to shop around and get estimates from multiple title companies and make sure you get detailed breakdowns of all fees and charges. Also, make sure to find out if the estimate is guaranteed. Find the best price and choose the company you are most comfortable with. After all the final choice belongs to the consumer.