: The lender charged a fee to process and "underwrite" their mortgage application, often starting at 0.5% to 1% of the loan .
: A title company charged about $300–$2,500 to search public records and ensure no one else could claim ownership of the home .
Meet Sarah and Mike. They just found their dream cottage for $400,000. They have their 20% down payment ready, but their lender just handed them a "Loan Estimate" that made them realize the sticker price was only the beginning.
As the closing date approached, the administrative costs—often called —began to stack up, typically totaling 2% to 6% of the loan amount :