- Lenders charge a fee to process the application or document as filled out by a prospective borrower to qualify for a loan. The application generally details the financial situation of the borrower and must be reviewed before a loan decision can be made.
invoice, processing cost, bill, service fee, statement
Related Terms and Acronyms
- Closed-account Fee — Definition,
- A fee charged for shutting down an account. Sometimes charged if the account is closed before a certain time period has passed.
- Closing Costs — Definition,
- The miscellaneous expenses involved in closing a real estate transaction that are over and above the purchase price. Some of the closing costs include title insurance, appraisal fee.
- Commercial Mortgage — Definition, Very Important,
- A mortgage for commercial property.
- Late Payment — Definition,
- A sum a borrower sends to a lender that is received past the date when it was due.
- Loan Application Fee — Definition,
- A cost charged by a lender for processing loan application documents that are submitted by prospective borrowers.
- Pre-paid Expenses — Definition,
- also called prepaid items or prepaids -- Recurring costs such as taxes, insurance and interest that are paid at closing and which cannot be financed.
- Umbrella Mortgage — Definition,
- A specific arrangement where one document encompasses one or more already existing mortgages registered on the same property. The mortgagee is responsible for remission of payment(s), to lender(s), while the mortgagor makes one payment to the mortgagee. Also referred to as a wraparound.