Real Estate Terms Glossary
What is an Application Fee?
In real estate, an application fee can refer to the fee a lender or broker charges to cover their processing costs when an individual applies for a mortgage or for the ability to lease a property. Application fees can vary, and are typically used by companies to weed out buyers or leesees that have low intentions of moving forward. If application fees were not charged, mortgage lenders and brokers would risk incurring huge costs without any guarantee of business.
Fees typically range from $150 - $400 , depending on the situation.
Application Fee Examples
Examples where you will find application fees include:
- Example 1. Application fees to apply for a mortgage.
- Example 2. Application fee to apply to rent or lease a property.
Here’s Investopedia’s definition of an Application Fee .
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