Loan Application Fee

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Definition of 'Loan Application Fee'

A loan application fee is a fee charged by a lender to process a loan application. The fee is typically a flat fee, but it may also be a percentage of the loan amount. The fee is used to cover the lender's costs in processing the application, such as the cost of credit checks and appraisals.

Loan application fees can vary depending on the lender and the type of loan. For example, a mortgage loan application fee may be higher than a car loan application fee. The fee may also be higher for loans with a higher interest rate or a shorter repayment term.

It is important to be aware of the loan application fee before you apply for a loan. The fee can add to the overall cost of the loan, so it is important to factor it into your decision-making process.

Here are some additional things to keep in mind about loan application fees:

* The fee is typically not refundable, even if your loan application is denied.
* Some lenders may offer a waiver of the loan application fee if you meet certain criteria, such as having good credit or a high income.
* You can shop around for different lenders to compare loan application fees.
* The loan application fee is just one of the costs associated with getting a loan. You should also consider the interest rate, the repayment term, and any other fees that may be associated with the loan.

If you have any questions about loan application fees, you should contact your lender.

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