Definition
Application fees ($300-$500) cover the cost of processing your initial mortgage application, running credit reports, and preliminary review. They're non-refundable even if your loan is denied. Some lenders waive them; it's worth asking or shopping around.
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The application fee covers the cost of processing the initial application, ordering a credit report, and preliminary review. This fee is non-refundable even if the loan is denied. Some lenders may include it in closing costs; others may waive it.
Pro Tip
Shop for lenders that waive application fees or offer credits; multiple applications within 45 days shouldn't incur multiple application fees.
Example
A lender charges a $400 application fee when a borrower submits a mortgage application. This fee is non-refundable.