Residential brokers give a Loan Estimate within three business days of receiving a complete application, which is the main way a borrower compares fees. Commercial and investor brokers send a fee proposal or engagement letter before starting. Clients compare the broker fee, the interest rate and lender credits, third-party costs, and how likely the loan is to close.
When to use estimates: Use estimates to provide project quotes and get client approval before starting work. Once approved, convert your estimate to an invoice with one click to collect payment.
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Fees depend on whether it is a purchase, refinance, cash-out, bridge, or investor loan, and a change in loan size changes a percentage fee.
State whether you are borrower-paid or lender-paid and show the percentage or flat fee, so the client can compare offers.
Appraisal, credit, title, and flood certification charges are separate from your fee, and clients often assume otherwise.
A delayed closing can lead to extension fees, and the client should know the cost before it happens.
Rates and fees assume a credit score, loan-to-value ratio, and documentation. If those change, the pricing changes.
Clarifies what is charged up front, what is credited at closing, and what happens if the deal fails.
Market pricing moves daily, so the quote needs an end date, and clients need a realistic closing date.
| Service | Priced | Typical range |
|---|---|---|
| Residential origination fee (borrower-paid) | % of loan amount | 0.5%-2% |
| Processing fee | flat fee per loan | $400-995 |
| Underwriting or application fee charged by broker | flat fee per loan | $300-995 |
| Commercial or investor loan brokerage fee | % of loan amount | 1%-2% |
| Commercial engagement or packaging fee | flat fee | $2,500-10,000 |
| Credit report (pass-through) | per borrower | $30-80 |
| Loan scenario or financing consulting | per hour | $100-250 |
| Freelance loan processing for another brokerage | per file | $300-600 |
Typical US ranges. Rates vary by region, experience, and job size.
Borrowers compare the total cost of the loan. Show your compensation, the rate, any lender credits or points, and estimated third-party costs together so the quote can be compared with other lenders.
A stabilized rental property with clean financials takes far less packaging than a construction loan or a borrower with messy tax returns. Set the engagement fee to the work needed before a lender commits.
Choose a consistent compensation schedule and a minimum fee for small loans. Many states and lenders cap or review broker compensation, so check your local rules before setting it.
If the loan amount, property, credit profile, or lock date changes, send an updated quote. Residential changes may require a revised Loan Estimate, so follow the disclosure rules.
For most residential mortgages, the Loan Estimate is a required federal disclosure and works as the formal quote. You can give informal pricing earlier, but it should be consistent with the Loan Estimate you later issue.
Generally not for residential loans. Before the borrower receives the Loan Estimate and indicates intent to proceed, you usually can only charge for a credit report. For consulting or commercial scenarios, you can charge an agreed fee in a written agreement.
Residential pricing is tied to the rate lock and market conditions, so quotes are valid for a short time unless the rate is locked. Commercial fee proposals often stay open 14 to 30 days.
State the loan request, the fee and any retainer, whether the retainer is refundable or credited, who pays third-party reports, the term of the agreement, and any tail period that protects your fee if the client closes with a lender you introduced.
Use the Mortgage Broker invoice template to bill the client, or convert this estimate once it's approved.
Mortgage Broker invoice template