When you are buying a new home, it’s important to not only consider the actual cost of the home but also get the breakdown of typical mortgage loan fees. These fees can be significant and can affect your overall budget when you are home shopping. If you’re not sure about the fees you need to account for, talk to your real estate agent or mortgage company. Here are some of the fees you are likely to encounter.

Loan Origination Fee

Loan origination fees are charged by mortgage companies to cover the cost of the administration of your loan. These fees may be charged as a percentage of your overall loan or as a flat fee. In some cases, loan origination loans are being replaced by an application fee and underwriting fee. Every mortgage company has their own process for determining these fees, and the fees can vary between different loan products within the same company. Be sure that you understand the origination fees upfront when you select your mortgage, because it will be too late to renegotiate them once you enter the closing process.

Appraisal Fees

Lenders require appraisals on properties before approving a loan to determine what the home is worth. Generally, these inspections are carried out by third-party, licensed appraisers, and this fee covers the cost of hiring these experts. In addition to the appraisal, lenders may require one or more inspections to be done on the property. There will be additional lender inspection fees in this case.

Credit Report Fee

Your credit report is used by lenders to determine whether to approve your mortgage application, how much to lend, and what interest rate to charge. The fee for obtaining a credit report may be charged back to you as a fee when you close on your home.

Contact Us.

At CoreTitle, we’re committed to making sure no surprises await you after closing, with assistance with mortgages, settlements and thorough title searches. Get the help you need today by calling (856) 316-4005 for our offices in South Jersey; (267) 428-3821 for our team in Philadelphia, Pennsylvania; (954) 434-1445 for our Ft. Lauderdale, Florida office; (239) 970-4200 for our Naples, FL office,  (305) 357 -3989 for our Miami, Florida office  or (734) 823-3356 for our Northville, MI office.