Does “Mortgage Application Waived” Mean Free?
All financial products and contracts carry application fees. In several situations, providers will waive the fees. It’s also a sign that the company is having a good year. To gain a client, they decide to forgo activation, establishment, and administrative fees. For the client, it’s a nice perk.
If a lender agrees to waive the mortgage application fee, it’s normal to wonder if waived means free? In a sense, it does. Establishing a new mortgage application docket requires several administrative hours. It’s not easy for lenders to invest in man-hours if the applicant will not see the process through to the end.
The fee ensures that the applicant is committed to the process that lasts one to three months to complete. In addition, some homebuyers must provide additional financial documents after the first and second months of the process. The financial background check is thorough. Lenders aim to help homebuyers succeed as homeowners.
Mortgage House does forgo the establishment fee in some cases. In others, we help homebuyers apply for our no-fee home loan. Nonetheless, we work with our clients to find a middle ground that puts them on the path toward homeownership.
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Does Waived Mean Free Conclusion
If a lender doesn’t charge a normal fee, you can conclude that waived means free. However, it simply means that the lender will enter a zero in that spot instead of an amount. Nonetheless, it’s a nice perk to receive. To explore your home loan options, contact our Mortgage House loan specialists.