Origination fees aren’t the only loan costs you must take into account before signing on the dotted line when taking a loan. Lenders may charge a wide variety of other fees. These fees differ by loan type as listed below:

Mortgages:

• Appraisal fee: The appraisal fee covers the cost of having the property appraised to confirm the loan is big enough to cover the home’s value.
• Home inspection fee: Some lenders require a home inspection before they will approve you for a mortgage; you’ll pay a fee for this service.
• Title insurance fee: his fee covers the title insurance company’s costs to insure the transfer of the deed into your name.
• Recording fee: Mortgage lenders may charge a fee for recording your deed to your new home with local government agencies.

Auto loans:

• Registration fee: When you buy a car, you’ll pay a mandated fee to register it.
• Vehicle inspection fee: You may require inspections to ensure the vehicle meets state standards.
• Destination fee: Sometimes called the shipping fee, this covers the cost of transporting the vehicle to the dealer.
• Preparation fee/dealer fee: Dealers may add in vague fees for getting the vehicle ready for you.

There are also some miscellaneous fees that may be applied to any type of loan:

• Brokerage fee: Loan-matching services may charge a brokerage fee for this service.
• Credit report fee: this fee covers the lender’s cost to obtain your credit report and credit score.
• Underwriting fee: This charge is for underwriting and approving your loan application.
• Processing fee: This is a fee for processing the loan.
• Document preparation fee: This covers the preparation of the documents involved in getting a loan.

Before signing any loan documents, make sure to get a detailed breakdown of all the fees you’re paying and what each is for. If you see other fees in addition to the origination fee, ask the lender what the origination fee includes to make sure you aren’t being charged twice. Don’t agree to a loan until you fully understand what each fee is for and how it will be paid.

Know Your Credit Score

Because the costs associated with getting a loan can quickly add up, it’s important to pay attention to the details of the loan agreement. Before you start shopping for a loan, get a free copy of your credit report from any credit bureau and your credit score to see where you stand and whether you’re in a good position to negotiate your origination fees. Understanding your options for handling origination fees will help you choose the best loan for your situation.