Asked in MortgagesCredit ReportsCredit
Once you've been preapproved havent they already run your credit if so why do they charge you a credit report fee at closing?
January 19, 2008 2:30PM
Some brokers do a "preapproval" without running your credit. They base their answer on how you deem your credit is. It is very irresponsible of a lender to do.
In most cases the lender runs your credit early in the loan process. As a convenience to you, they do not charge you upfront. If they did, they would also have to collect upfront for the appraisal, title work, automated underwriting findings, processing, underwriting, etc. Rather than charge you as each of these costs are incurred, the lender will normally collect most of these fees at closing.