What Is an Underwriting Fee?

Introduction

The underwriting fee pays for the lender to evaluate your application, verify income and assets, assess credit risk, and approve or deny the loan. See Mortgage Underwriting Explained.

The fee may appear as a separate line item or be bundled into origination charges. Compare What Is an Origination Fee and What Are Closing Costs.

Frequently Asked Questions

What is an underwriting fee?

The underwriting fee pays for the lender to evaluate your application, verify income and assets, assess risk, and approve or deny the loan. It compensates for the underwriting process.

How much does underwriting cost?

Underwriting fees vary by lender. They may range from a few hundred to over a thousand dollars. Many lenders bundle underwriting into a single origination charge.

Is underwriting fee separate from origination?

Sometimes. Some lenders itemize processing and underwriting separately; others combine them into one origination charge. Compare total lender fees on your Loan Estimate.

Can I avoid an underwriting fee?

Lenders must underwrite every loan. Some offer "no lender fees" options, but the cost may be reflected in a higher rate. Compare APR and total costs.