Loan Application Fee
A fee charged to process an application for a loan, such as a home mortgage from a lender or mortgage broker. Loan application fees are charged to cover some of the costs involved in processing the application including credit checks, property appraisals and basic administrative costs. Investopedia Says:
Loan application fees are pretty standard in the lending industry but should be carefully reviewed all the same. Not all loan applications will require you to pay a fee; for example, the lender may waive the fee in an attempt to secure your business. In general, the fee should only be a couple hundred dollars - higher fees should be viewed with some skepticism. Most application fees are nonrefundable, even if the lender decides to not offer credit to the individual applying for a loan. Related Terms:
Conventional Mortgage
Credit Report
Credit Scoring
FICO Score
Fixed-Rate Mortgage |