Why “non-refundable” gets pushback
Investors naturally dislike paying for something before they know a deal will close. That reaction makes sense. The other side is that a funding provider may start committing time and resources before the closing outcome is known.
What the fee may be paying for
- Initial underwriting and deal review.
- Document preparation and coordination.
- Title-company communication.
- Capital reservation or opportunity cost.
- Administrative work.
- The risk that the transaction never reaches closing.
Do not evaluate the fee in isolation
Instead of asking only, “Is the upfront fee expensive?” ask whether the entire transaction still produces an acceptable result after all funding costs.
Example mindset: if a funding fee allows a profitable transaction to close that otherwise could not close, the relevant comparison is the fee versus the value created — while still making sure the economics are reasonable.
Questions to ask before paying
- Exactly what is the fee for?
- When does it become earned?
- Is any portion refundable?
- What conditions must be met for funding?
- What other fees are due at closing?
- What happens if title, seller, buyer, or lender causes a delay?
- Is there an extension fee?
Red flags
- No written agreement.
- No clear description of the funding service.
- Pressure to wire money without verified instructions.
- No identifiable company or contact information.
- Promises of guaranteed funding without reviewing the transaction.
Healthy skepticism is good. A legitimate fee can still be a bad deal if the numbers do not work. Always understand the agreement before paying.
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Tell Us About Your DealEducational information only. Deal Support Network does not provide legal, tax, investment, or financial advice. Funding availability and terms depend on the specific transaction and provider.