What Is a Mortgage Approval Fee?
A mortgage approval fee is another way of saying home loan origination fee. Mortgage House also refers to it as the application or establishment fee. It covers the administrative hours needed to establish a new application docket. The process to finance a home purchase has six steps that take four weeks to three months to complete. During that time, homebuyers must produce several financial documents. In some cases, homebuyers must produce their bank statements and payslips monthly three times.
The financial background check takes place to put the homebuyer in a position to succeed. Thus, the fees ensure that the home buyer commits to the process.
In addition to the approval fee, homebuyers also face the:
- Title search fee
- Valuation fee
- Settlement fee
Mortgage House understands that homebuyers must tighten their financial belts during the application phase. Our loan specialists help clients find strategies to waive them or roll them into the home loan. For example, Mortgage House offers a no-fee home loan. First-time homebuyers can apply for the FHOG to help defray the upfront costs.
A solution exists for most financial circumstances. Plus, Mortgage House provides several online tools that help homebuyers organise their financial paperwork. Our home loan calculator puts homebuyers on the path toward pre-approval. Try it with no strings attached.
Mortgage Approval Fee Conclusion
A mortgage approval fee is part of the upfront fees that homebuyers pay when they finance their purchases. Strategies to minimise and waive them exist. Mortgage House loan specialists walk homebuyers through their options. Contact our team today.