Origination Fees
One fee that you may encounter when applying for a self-employed home loan is an origination fee. This fee is charged by the lender to cover the cost of processing your loan application. Origination fees can vary from lender to lender, but they are typically around 1% of the total loan amount.
Underwriting Fees
Another fee that you may encounter when applying for a self-employed home loan is an underwriting fee. This fee is charged by the lender to cover the cost of evaluating your loan application and determining whether you qualify for the loan. Underwriting fees can vary from lender to lender, but they are typically a few hundred dollars.
Appraisal Fees
When you apply for a home loan, the lender will typically require an appraisal to determine the value of the property. Appraisal fees can vary depending on the location of the property and the complexity of the appraisal, but they are typically several hundred dollars.
Credit Report Fees
Lenders will also typically require a credit report as part of the loan application process. While the cost of obtaining a credit report is relatively low, some lenders may charge a fee to cover the cost of obtaining and reviewing the report.
Prepayment Penalties
Some lenders may charge a prepayment penalty if you pay off your loan early. This fee is intended to compensate the lender for the interest they would have earned if you had continued to make payments on the loan. Prepayment penalties can vary from lender to lender, so it’s important to review the terms of your loan agreement carefully.
Other Fees
There may be other fees associated with self-employed home loans, such as document preparation fees, title search fees, and recording fees. These fees can vary depending on the lender and the location of the property.
