How Much are Mortgage Fees?

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When shopping for a home, it’s important to note that the contract price of the home is NOT the actual price that you will pay at closing, if you are getting a mortgage loan. Additional fees and expenses should be discussed and accounted for, in addition to your down payment. The most common mortgage fees also fall under the umbrella of closing costs, those expenses you pay when you close on your house that help facilitate the sale (i.e., the appraisal fee, the title search, and the processing fee). Let’s take a look at this realtor.com article that helps break down these fees.

Mortgage Fees Likely to Pay:

1. Appraisal – Typically $450-$650 – An appraisal is almost always required by the lender. This can be paid before closing or it can usually be wrapped into your closing costs.

2. Home Inspection – Typically $400-$600 – The home inspection is not a requirement for your lender, but all Realtors will tell you to get one. This is paid at the time of service.

3. Lender’s Title Insurance – Typically 0.5% of the purchase price – This is required by your lender and paid as part of closing costs.

4. Credit Report Fee – Typically $25-$50 – This is required to pull your credit and paid as part of closing costs.

5. Title Search – Typically $300-$600 – This is required by the lender to make sure there are no liens on the property. This is paid as part of closing costs.

6. Attorney Fee – Typically $300-$600 – This is required in the state of Mississippi. This is paid as part of closing costs.

Mortgage Fees You Might Have to Pay:

1. Survey – Typically $350-$500 – Some lenders may require a survey. This can be paid as part of closing costs.

2. Lender Application Fee – Typically $100 – Some lenders charge an application fee. This can be paid as part of closing costs.

3. Flood Certification – Typically $5-$10 – This tells the lender if the property is in a flood zone. This can be paid as part of closing costs.

4. Origination or Processing Fee – Typically $300-$1500 – This fee covers the cost to prepare your mortgage. This can be paid as part of closing costs.

5. Homeowner’s Title Insurance – Typically $1000 on average – This is not required, but many choose to purchase. It covers you if liens are missed during the title search. This can be paid as part of closing costs.

6. Underwriting Fee – Typically $400-$600 - This fee is paid to your lender to cover the cost of researching whether or not to approve you for the loan. Some lenders bundle together the underwriting with origination fees or processing fees.This can be paid as part of closing costs.

7. Wire or Courier Fee – Typically $25-$50 – If documents need to be sent overnight or money needs to be wired, you’ll pay these fees at closing.