An application fee is a charge levied by a lender to a potential borrower for the time and effort required to accept and begin processing a loan application. This fee often covers the cost of an appraisal and a credit report.
Automated mortgage underwriting involves processing mortgage applications primarily or entirely through computerized systems which evaluate eligibility and creditworthiness based on predefined criteria.
Junk fees are charges levied by a lender at closing in the hope that the borrower will neither question them nor abort the transaction. These fees often are of a questionable nature but are relatively small compared to other legitimate closing costs.
Loan Origination is the comprehensive process of creating a new loan, which spans from the initial marketing efforts to the actual closing of the loan agreement. This critical phase in lending encompasses several steps to ensure that both the borrower and lender align with the terms.
A loan origination fee is a service charge collected by lenders for processing new loan applications. This fee can cover various administration tasks such as application processing, underwriting, and funding the loan.
A Loan Package is a comprehensive collection of documents that are associated with a specific loan application. This package includes all necessary information required by the lender to evaluate and process the loan request.
Loan processing encompasses the various steps taken by a lender to approve a loan, from the initial application to the closing of the loan. It involves verifying the borrower's information and fulfilling necessary requirements to ensure the legality and financial viability of the loan.
Origination fees are charges to a borrower to cover the costs of issuing the loan, such as credit checks, appraisals, and title expenses.
