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Loan Fees are paid to the lender as a cost of providing the mortgage. You should always ask for a complete disclosure of all fees you are required to pay to the mortgage lender in writing. Otherwise, the lender may not fully disclose all fees required until after you submit the application and receive your Good Faith Estimate of Closing Costs. By this point, you will have already paid an application fee, and possibly a rate lock fee, neither of which will be refunded if you withdraw your loan application.

Loan fee costs include, but are not limited to, the following:

Appraisal

The cost charged to the lender by a certified appraisal company providing the appraisal of your home. The cost of the appraisal is higher for homes valued in excess of $500,000 and for multi-family homes. Single family appraisals range from $200 - $300 and multi-family appraisals range from $450-$550. Fee is normally paid at application.

Attorney or Title Review Fee

The cost charged to the bank by the bank's attorney for work performed in connection with the mortgage. Fees can range from $150 to $300 and is normally paid towards closing.

Commitment Fee

A fee paid to the lender at the time of commitment. This is normally charged in lieu of the attorney review or title review fee. Fees can range from $150 to $300 and is paid at commitment (the point at which bank notifies you of your approval).

Credit Report

The cost charged to the bank by the service providing credit report services. Additional credit report fees apply for non-married co-borrowers. Standard credit report costs can range between $50 and $60, with additional costs ranging from $40 to $55. Credit report fees are paid at application.

Doc Prep Fee

A fee charged to prepare the mortgage documentation. Fees can range from $50 to $100 and is normally paid at closing.

Flood Certification or Flood Tracking

The cost charged to the bank by the service that notifies them whether or not your home is located in a flood zone. Fees range from $15 to $30 and is normally paid at application.

Origination

Origination fees are normally charged by mortgage brokers, bankers or companies. This type of fee is a commission on the loan and normally won't be disclosed to you unless you specifically ask. An Origination Fee is typically 1% of the amount you are borrowing.

Pre-Paid PMI

If PMI (private mortgage insurance) is required on your loan, you will have to pre-pay part of it at closing. The amount required may range from 2 to 14 months of your monthly premium, depending on the type of coverage the lender offers. It's a good idea to check with the lender to find out if a portion of your closing pre-payment can be refunded when PMI is no longer required.

Processing Fee

This fee represents the lender's cost to process the loan and is normally paid at application. Cost can range from $50 to $100 and is either paid separately at application or is included in the application fee.

Rate Lock Fee

The cost to lock the rate. This fee is normally refundable for standard 60-75 day rate locks. Always ask if the fee is refundable at closing for extended rate locks.

Tax Service Fee

A fee charged by lenders who require tax service, which informs them of any liens that apply to the home where the mortgage holder would take second position. Standard charge is $83 and is normally paid at closing.

Warehouse

Warehouse fees are the finance charges the lender has to pay on the line of credit, which is then passed on to the borrower. They are normally charged by mortgage brokers, bankers, or companies that carry a line of credit with a larger bank or finance company.