Newbie to Real Estate investing

[Cheryl J McGrath]

When a lender tells you that the loan fees are paid at closing.....does this mean that the fees are taken out at closing or do I pay the loan fees? 

[John T.]

At a real estate closing, loan fees are typically paid by the borrower as part of the closing costs. Closing costs are the various fees and expenses that are associated with the purchase or sale of a property, and they are typically paid at or before the closing of the transaction.

Loan fees are one type of closing cost that the borrower may be responsible for paying. These fees can include origination fees, points, and other fees charged by the lender for processing and underwriting the loan. The borrower may also be required to pay other closing costs, such as title fees, appraisal fees, and recording fees.

The specific closing costs that the borrower is responsible for paying will depend on the terms of the loan and the requirements of the lender. The borrower should review the closing disclosure provided by the lender, which will itemize all of the closing costs and fees that the borrower will be required to pay at closing. The borrower should also discuss the closing costs with their real estate agent or attorney to understand their responsibilities and to ensure that they have sufficient funds available to cover these costs.