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.