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What is an Underwriting Fee?
As part of the loan application process is the evaluation of the level of risk that the particular borrower poses. This evaluation doesn't come for free and an underwriting fee is charged for this purpose.
Referred to as underwriting process, the lender evaluates the likelihood that the borrower will or will not be able to pay back the lent money. During this evaluation, the lender examines the credit report of the potential client, as well as his/her debt-to-income ratios and other factors.
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