Application Fee: Fee charged by lender to offset fixed costs related to mortgage loan processing such as appraisal, credit report, and underwriting

Closing Fee: The fee charged by the closing agent who prepares the closing documents and closes the loan on behalf of the lender

Commitment Fee: This is often called an origination fee and is generally computed at 1% of the mortgage amount

Discount Points: Each point is equal to 1% of the mortgage amount. Points are used by the lender to adjust the yield on the mortgage when it is sold to an investor. By paying more points, the borrower can obtain a lower mortgage rate

Funding Fees: Normally applicable on VA loans only, equal to 1% of the loan amount. The fee is due at closing or may be added to the loan amount and financed

Mortgage Insurance: Insurance required by the lender when the down payment is less than 20%. In the case of loan default, this insurance reduces the lender's loss

Prepayables: Adjustment to escrow accounts from the date of closing to the date of the first payment. Interest in paid through the end of the month of the closing, taxes are paid through the end of the month of closing plus the following month. 2 months of PMI are collected. 2 months of homeowners insurance may be collected. A homeowners' insurance policy must be provided along with a receipt showing that the first years' premium is paid

Recording Fees: Fees charged by state or municipal entities for entering the closing documents into public record

Survey Fee: Is usually required and is used by the lender to check for encroachments from within or from outside the subject property

Title Insurance: Provides protection for lenders and homeowners against financial loss resulting from legal defects in the title

Underwriting Fee: Usually included in the application fee. However, practices vary from lender to lender