Mortgage Application Fees

As with nearly everything associated with purchasing a new home, fees may also be applied to the loan application. So what fees can you expect to pay at the mortgage application stage?

Application fees generally run from $0 to $500.
Appraisal fees -- these can run up to $500 and depend on what part of the country you live in.
Credit Report Fees -- these fees can run up to $100.

Lender Fees
For the "pleasure" of doing business with a lender, you may be charged various fees which are generally due at closing. Not all lenders charge all of the following fees, however you will generally be charged some of them. If there are any fees that were not outlined in the Truth in Lending statement and they seem very high, dispute them at the closing.

The following is a list of fees lenders may charge. Do not be surprised if you are being charged these fees. However, if you are not happy with paying them, tell the lender and you may be able to negotiate some of these fees down or not have to pay them at all.

1. Lenders Credit Report Fees.
There may be two credit reports pulled up on you and the co-borrower. The first one is pulled up when you apply for the loan and the second one may be pulled up just prior to closing. The cost can run anywhere from $25 to $60 per report.

2. Lenders Processing Fee.
The lender may pass on the cost of doing business to the borrower. This is the charge for processing the loan application. The cost can run anywhere from $50 to $250.

3. Lenders Appraisal Fee.
This is the fee the lender passes on to you for having the home appraised. Ideally, this should be the same amount the appraiser charged the lender for the service. There are also electronic appraisals, which search a huge database for price comparisons for homes that are similar to the one you are buying. An appraisal may run up to $500 however an electronic appraisal can be less expensive and cost about $100.

4. Title Insurance.
Title insurance protects the lender financially in the event somebody stakes a claim on the home you are purchasing. The cost of this insurance is passed on to you. The cost can run anywhere form $50 to $400.

5. Prepaid Interest on The Loan.
This is the interest that is charged per day on your loan form the day of closing to the last day of the month in which you close. After you pay this you skip a month and then begin to pay the regular monthly amount in arrears.

6. Tax Escrow Service Fee.
This is a fee paid one time to set up and service your property tax escrow. This can run anywhere from $30 to $100.

7. Lenders Document Preparation Fee.
This is simply a fee for preparing the loan documentation. The cost can be anywhere from $0 to $300.

8. Loan Application Fee.
This is the fee a lender may charge you for accepting the loan application. Remember, this fee is not refundable so be sure you want to deal with this lender before applying for a loan. This can cost from $0 to $500.

9. Remember These Are Only The Lenders Fees.
At closing there will be many more fees due.
See National Mortgage "Closing Costs" guide for a complete list of closing costs.

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