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What are lender fees?

one of my friend said that if you take a mortgage you will have to pay huge anount of lender fees. What are lender fees?

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Lender Fees are the fees charged by a lender to meet some of the expenses and their profitability goals. These fees vary from lender tom lender.

The most common lender fees are:
[list:b275ccd4f9]
[*:b275ccd4f9] Origination fees
[*:b275ccd4f9] Processing fees
[*:b275ccd4f9] Underwriting fees
[*:b275ccd4f9] Commitment fees
[*:b275ccd4f9] Points and
[*:b275ccd4f9] Document preparation fees.
[/list:u:b275ccd4f9]
Thanks,
Jerry

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Anni,

Welcome to MortgageFit Forums.

Here is some more information on the topic

There are different costs associated with mortgage loan and one of them is lenders fee. There are different types of fees that are charged by the lender which individually do not amount much but when combined together can total to hundreds of dollar.

Some of the common lenders fees are explained below -:

Document Preparation fee- This is a fee that a lender charges for preparing all the legal documents which are needed at the time of closing.

Loan underwriting fee- Lenders need to know about credit risk involved in a loan. For doing this they use sub-contractors to perform the underwriting task. And the subcontractors charge some fees from the lender for doing this. In order to offset these cost lenders may charge the borrowers an underwriting fees.

Loan Processing fee- Loan officers and loan processors work with the borrowers to obtain the necessary documents and information required by the lenders. For this they charge a processing fee.

Notary Fees- Before a deed of trust is recorded in local court house the borrowers signature should be notarized. This can be done when a individual certified as notary public witnesses that the signature of the borrower on the recordable documents as true and correct. For this they charge a fee.

For more information on this topic go through Mortgage Associated Fees section of the site.

God Bless You,

Thanks,
Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

I was told by lender that i will be charged a wire transfer fee which is included in the lenders fee. Can you tell me more about it?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Kate,

Welcome to MortgageFit Forums.

Mortgage lenders usually wire the funds they lend to the escrow company handling the loan at closing. Funds are wired through the Fedral Reserve System and done through commercial banks who are a member of Federal Reserve Bank. Usually the banks charge fee for this which are then tranferred to the borrowers.

God Bless You,

Thanks,
Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I want to know what is flood certificate fees?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Martina,

Welcome to MortgageFit Forums,

Lenders are required to have flood insurance if the mortgage loan secured to a borrower is secured on a property sitiuated in flood prone area. Genrally lenders use some outside service to determine whether the property is in flood area or not. Lenders are genrally charged $40 for this service and lenders collect this fees from the borrowers.

God Bless You.

Thanks,
Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks Samantha for that promt reply. I have learned a lot not only from this posts but from many others also. GOOD JOB!!!!!!!!!!!!!

Martina

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am being quoted an underwriting and processing fee; they seem pretty similar to me. Are these fees normally negotiable? In my particular situation the total is about 800.00.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

Jessica's picture
Jessica | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Rhonda,

Welcome to the forums.

The processing and underwriting fees vary from one lender to another. These are not similar actually. The former is charged for processing the loan and the latter for analyzing the risk involved in giving you the loan.

You can negotiate with the lender regarding the processing fee as it is charged by the lender himself.

As far the underwriting fee is concerned, you may have to request your lender so that he can negotiate with the underwriter who actually gets the fee. So I would suggest that you talk to your lender without any delay.

There are also various fees that the lender may charge during the mortgage process. Some of these fees can also be negotiated. You will find the details of such fees in the section on Mortgage Related Fees.

Hope that I could help you. Our community always tries to resolve the queries of common people. In case you have any other queries please feel free to contact us. And, you can also join our community and participate in our forums. This will give you the opportunity to earn mentor marks for every post you make in our forums.

Thanks,
Jessica.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

hello,
i am in the process of filing put a mortgage application. They've sent a package to me containing a good faith estimate. I just need to know what the average amount for the loan origination fee and the lender fee should be. There is also a tax to lender fee added. Please help.

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Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Sonia,

Welcome to MortgageFit Forums.

Your query has been answered here. Kindly check, and feel free to ask if you have further doubts.

One thing that you might check about the tax that you mentioned is whether it is the tax service fee that is mentioned. This fee is collected and paid to an outside source which monitors your tax account. It alerts the lender to any tax bills that remains unpaid.

God bless you.

For MortgageFit,
Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what is a appraisal review fee and how much it can be

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

blue's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Liddell,

Welcome to Mortgagefit discussion board.

You will probably not see this on your GFE but it is occasionally charged by lenders. Sometimes lenders review appraisals especially for higher valued properties as a quality control measure. The fee you would be likely charged will be in the range of $75 to $150.

Do let me know if you have any other questions.

Thanks
Blue

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pan_kul's picture
pan_kul | Joined: March 13, 2007 03:10 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Which part of lender fee is expressed as points or origination fee

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

pan_kul,

Points are a percentage of the loan amount paid upfront so that you can get a lower interest rate.

Origination fee is the cost the lender demands for originating your loan.

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