What are Lender Fees?
Lender fees are those charges you pay to offset the costs of paying the lender’s staff to underwrite your loan, prepare your loan documents and fund your loan.
When your loan is sent to a lender, their staff performs a variety of tasks to approve it. Staff members include staff to review the loan data to ensure it is set up correctly in the computer system, create and send out your disclosures, underwriting review and approval, collection of additional paperwork needed to satisfy any further underwriting requests, prepare your loan documents, review your signed loan documents, request funds and finalize the wire transfer.
These people represent staff expense to the lender for which the lender typically charges a flat administration fee which will be included on your disclosure documents.