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An origination fee is what the lender charges the borrower for making the mortgage loan. The origination fee may include processing the application, underwriting and funding the loan, and other administrative services. Origination fees generally can only increase under certain circumstances.
Legal or Documentation Fee: Lenders charge a fee for the internal preparation of loan documents and the legal due diligence process (review of contracts, leases, loan documents for existing lenders, etc.), or require you to reimburse the legal fees charged by their outside attorneys for this work.
Lenders levy this charge to cover the cost incurred while processing the loan. However, in some instances, lenders can waive off these charges entirely or partially. It includes the following: During festive offers.
If you have received your Loan Estimate and you tell the lender that you want to proceed, then the lender can charge you additional fees. For example, lenders commonly charge an application fee or an appraisal fee after you decide to proceed with the loan application.
A loan origination fee is an upfront charge that a lender deducts from the total loan amount. This type of fee can also be thought of as a processing fee.