Other fees charged by commercial mortgage lenders may include application fees, loan administration fees, or underwriting fees, which cover the costs of underwriting borrowers’ loans. Fees are typically paid when the loan closes, though an application fee is often charged earlier in the loan process.
If you work with a commercial mortgage broker, he or she may charge an application fee as well – so borrowers should closely scrutinize all fees charged to them in their property loan agreements, and should ask about fees before choosing to work with a commercial mortgage broker.
Application fees charged by a commercial real estate lenders sometimes cover the appraisal costs (though those may be charged to the borrower separately).In general, fees can vary broadly depending on the loan type and size of the property, and borrowers should be careful to compare fees among offers from multiple lenders. Borrowers can expect fees of ~$10,000 or more for loans up to $5M.