Common Closing Cost Charges

Loan Origination Fee: Covers the lender's costs for obtaining financing and administrative costs. It is usually shown as a percentage of the loan amount.

Loan Discount Fee: A charge from the lender in order to lower the interest rate on the loan.

Appraisal Fee: The appraisal fee covers the cost of calculating the fair market value of the subject property.

Underwriting Fee: This fee covers the cost of evaluating an entire loan package in order to determine the potential borrower's eligibility to receive the funds.

Credit Report Fee: This fee covers the cost of obtaining a credit report, which is essential to determine the borrower's eligibility for a particular loan program.

Lender's rate lock-in fee: This fee is charged to lock in the interest rate of the loan.

Processing Fee: This fee is charged by the lender or broker to cover the costs that are associated with bringing a loan from application to closing.

Flood Certificate Fee: This fee is for cost of determining whether the subject property is in a flood zone.

Wire Transfer Fee: The lender can charge a fee to wire the funds needed for closing.

Application Fee: This fee is used to cover the lender's initial costs for initiating an application.

Mortgage Insurance: Insurance required by lenders if the loan-to-value ratio is more than 80%. This protects the lender in case the borrower defaults on the loan.

*The aforementioned fees are the most common fees associated with mortgage loans. Fees vary among loan programs and loan scenarios. iLoan Financing, LLC will provide all borrowers with a Good Faith Estimate disclosing and explaining all fees in advance.