Why Hard Money Lenders charge additional closing costs and fees?

[Lukas Vanagaitis]

Hello,

We are about to use HML for the first time.

We got multiple offer by lenders, most of them include fees we do not understand, such as THEIR closing costs and fees.

For example: 12% interest, 2 points + 3.5% 'OUR CLOSING COSTS' + Service fee of $749.

Another example: 10% interest + 'The range of points and closing fees will be approximately $7000.00 to $8000 . Included in this would be title, underwriting and document prep fees.'

Is this normal and typical? What HML has to do with TITLE fees and what is 'THEIR' closing?

Thanks