Private Lender upfront fee

[Camerron Feagin]

I have a private lender who is asking for an upfront loan processing fee but said it will be reimbursed at closing. The interest rate is 4% is this a SCAM?

[Matthew Crivelli]

This sounds like 100% scam, a fee upfront promised to be paid back at closing? That makes zero sense. The only cost upfront should be an appraisal and it should be paid to a 3rd party not to the lender. You have to remember, if someone is offering you something that sounds to good to be true and they want you to give them money upfront to get it. SCAM every time.