Cost to Apply for a Mortgage Loan
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What Does It Cost to Apply for a Mortgage Loan?
There are a few basic costs that you will incur with almost every lender in the U.S, Canada, and Europe. The most common:
- Credit report fee – unlike a credit card or auto loan credit report, which usually costs less than $5.00, a mortgage loan credit normally costs between $12.00 and $20.00.
- Appraisal fee – whether you are buying or refinancing property, you will need a full appraisal, often called a “Fannie Mae appraisal”, since the basic format is prescribed by the Federal National Mortgage Association (Fannie Mae). This involves an interior as well as exterior examination of the house. Depending on where you live, the cost should range between $200 and $450 for a single family home or a condominium. If the property is a multi-family (two to four units), an appraisal should cost between $400 and $650.
- Application fee – in the past ten years, many lenders have eliminated this fee but some mortgage sources still charge an amount for making an application. When charged, this fee is to defray the initial cost of processing your application paperwork to determine if it will work. The fee should be around $200.
While there are many additional costs to close a mortgage loan, these are the only costs you should face to make a formal application.