- Origination fee
One of the most common fees charged by online mortgage brokers is the origination fee. This fee is typically a percentage of the total loan amount, and it covers the cost of processing your mortgage application. The origination fee can vary depending on the broker and the type of loan you’re applying for, but it’s usually between 0.5% and 1% of the loan amount.
- Application fee
Some online mortgage brokers may also charge an application fee, which is a fee you pay upfront when you submit your mortgage application. The application fee can vary depending on the broker, but it’s typically between $100 and $500. This fee covers the cost of processing your application and running a credit check.
- Credit report fee
In addition to the application fee, the online mortgage broker may also charge a fee for pulling your credit report. This fee is typically around $30 to $50 per person on the mortgage application.
- Underwriting fee
The underwriting fee is a fee charged by the lender to cover the cost of reviewing and approving your mortgage application. This fee can vary depending on the lender and the complexity of your application, but it’s typically between $500 and $1,000.
- Appraisal fee
Before a lender approves your mortgage application, they will typically require an appraisal of the property you’re purchasing. This appraisal is used to determine the value of the property and ensure that the loan amount is appropriate. The appraisal fee can vary depending on the size and location of the property, but it’s typically between $300 and $500.
- Closing costs
When you close on your mortgage, you’ll also be responsible for paying closing costs. These costs can include things like title insurance, recording fees, and attorney fees. The total cost of closing costs can vary depending on the location of the property and other factors, but it’s typically between 2% and 5% of the loan amount.
It’s important to note that the specific fees you’ll be charged can vary depending on the online mortgage broker you’re working with and the lender they connect you with. Before you begin the mortgage application process, be sure to ask the broker for a detailed breakdown of all the fees you can expect to pay.