Lender fees are charges that may be collected by the lender for the work involved in originating, processing, underwriting, and preparing your mortgage loan.
Not every lender charges the same fees. Some lenders charge several separate fees, while others combine them or do not charge certain fees at all. The names used can also vary from one lender to another.
Common lender fees may include:
Underwriting Fee
A fee for the lender’s review of your loan application and supporting documentation to determine whether the loan meets the lender’s and loan program’s requirements.
Processing Fee
A fee for the work involved in gathering, organizing, reviewing, and preparing the loan file as it moves through the mortgage process.
Administrative Fee
A general lender fee that may cover administrative work associated with originating and preparing the loan.
Origination Fee
A fee charged by the lender for originating the mortgage. Origination fees are less common than they once were, but they may still appear on some loans.
Not every lender charges all of these fees, and lenders may use different names for similar services. You may see one, several, or none of these charges depending on the lender and loan program.
When comparing mortgage offers, it is more helpful to look at the total lender charges than to focus on whether a particular fee appears by name. A lender with fewer individual fee lines is not necessarily offering the less expensive loan.