Is it typical to be charged a Commitment fee? (interest rate, pre-approval, fees) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

FreckleFace2 · 12-06-2010, 05:22 PM

The cost sheet that we recieved along with our pre-approval letter from the bank includes an $895 commitment fee. Is this typical? I want to make sure we aren't getting ripped off

They aren't asking us to pay any points, and they're quoting us an interest rate of 4.25% on an FHA loan. Our total purchase price is $189,900.

Thanks for any info you can give us!

dad2jules · 12-07-2010, 11:45 AM

Commitment fees are standard, but many lenders waive them for government (FHA or VA) loans.

t_woww · 12-07-2010, 03:33 PM

I am due to close on a my FHA mortgage in a week and I had to pay a commitment fee.

SmartMoney · 12-08-2010, 05:36 PM

We use to call it an underwriting fee, before that it was a processing fee, now it's called a doc review fee ($595)

ShanetheMortgageMan · 12-09-2010, 10:25 AM

With just about any lender you are going to have lenders fees. These will range anywhere from $600-$1,000. Like SmartMoney pointed out, these fees have different names, but they are all for the same purpose.

FreckleFace2 · 12-10-2010, 08:16 AM

Thanks, everyone! Very helpful info