Fees charged by a mortgage lender
A mortgage lender involves a lot of other professionals when
they create a mortgage loan for you. Each one of these professionals
charges a fee to complete the work necessary to generate a loan.
Some of the most common fees involved in generating a mortgage
loan are outlined below.
Appraisal fee: An appraiser reviews the home you are about to
buy and the neighborhood it is in and provides a professional
opinion of the home’s current value.
Processing fee: This charge includes the lenders up front costs,
including the time and effort to process your application and
getting your credit report.
Origination fee: This fee covers the costs of the lender’s
work in getting your mortgage ready. This can be a percentage
of the loan amount or a flat fee depending on your lender.
Document preparation fee: All of the paperwork involved in generating
a mortgage doesn’t come cheaply. This is charged typically
as a flat rate and can be a volume driven cost as more paper costs
more to prepare.
Attorney fee: To make sure that all aspects of your mortgage
meet the laws of your state, the attorney’s must review
all of the paperwork. This means that you must pay for that review,
and very often the mortgage lenders attorney’s fees, as
Remember to shop around for the lowest fees as there is some
flexibility in some of the fees. If a mortgage lender deals with
the same attorneys for every mortgage loan, they very often will
have flexibility in determining the fees charged. As the mortgage
business becomes more competitive, the fees will be an area where
they can give a better deal to you to win your business.