What fee may be charged prior to delivering the loan estimate form?

The credit report fee is the only fee that can be charged prior to delivering the loan estimate form. This fee covers the cost of obtaining the borrower's credit report, which is a critical component in evaluating their creditworthiness and determining the terms of the mortgage loan.

According to the regulations set forth in the Truth in Lending Act and Real Estate Settlement Procedures Act, lenders are allowed to charge a fee for the credit report before providing the loan estimate. This is necessary because the lender needs to assess the borrower's credit profile to accurately evaluate their loan application and offer appropriate loan terms.

Other fees, such as the application fee or processing fee, are typically not permissible prior to the issuance of the loan estimate because they relate to the overall processing of the loan rather than specific evaluations required upfront. The underwriting fee is also associated with the loan processing stages that follow the initial assessment, which is why these fees should be awaited until after the loan estimate is delivered.