What Are Loan Origination Fees?

Intimidated by mortgage loan terms and the list of fees? This short explainer video will help you get a handle on all of it.

While a mortgage involves borrowing money for a home, there can be quite a few items and fees in the stack of papers. “Loan origination” — the process of documenting and evaluating your loan application — is not free.

The “loan application fee” is one of the key components to understand.  This fee generally covers:

  • The lender’s costs to verify, evaluate and underwrite the loan.
  • This fee also pays for appraisal of the property — a professional valuation for the lender (not for the buyer.)
  • Fees to “pull” your credit history.
  • Other surcharges; ask the lender for a detailed list.

Loan application fees are generally non-refundable.

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