Document Preparation Fees (Doc Prep Fees)

A document preparation fee is charged by a lender for preparing loan documents such as the mortgage, note and other legal disclosures. The charging of this fee is illegal in some states unless the work is done by a licensed attorney. Some insiders call this fee a “junk” fee, because it is a easy way to increase gross profit by dressing up expenses with fancy labels.

The document preparation fee can cost anywhere from $20-$400 depending on the size of the loan, if the lender is dealing with both sides (buyer/seller), if everything is done online, or if the loan and process is done in a sit-down visit in an office. These fees, as with most fees on a mortgage, are negotiable.