Loan application fees. Yuck. Nobody likes to shell out money just to apply for a loan, but it’s a necessary evil. The loan origination process does involve work on the lender’s side, and the application fee pays for the costs of underwriting the loan, the home appraisal, a copy of your credit report, and any additional charges that may be necessary.
To give you a bit more perspective, here’s a basic overview of the loan origination process:
Application Processing – The lender has to process your application by reviewing the information for accuracy and completeness. If there’s any faulty or missing information, they will send it back to you to correct or fill out.
Underwriting – This is where the lender pulls together provided information like employment information and credit scores, which are taken into consideration along with the information on your application. Once the underwriting process is complete, the lender will decide whether to approve or reject your file.
One Last Check – If it’s approved, your file will go through one last round of quality control, which is essentially a last minute check to make sure everything is in order before they fund your loan.
Keep in mind that application fees are generally non-refundable, so make sure to get pre-qualified before you submit any loan applications.
At Title Junction we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 239.415.6574.
In case you missed it, check out our last Title Junction post: Help or Hassle: What’s Your Title Company Giving You?