---
title: "Application fee: definition | Desert Rock Capital"
url: "https://www.desertrockcapital.com/glossary/application-fee"
description: "An application fee is a charge some lenders apply to process and review a loan or credit application."
---

Loan costs

# Application fee
All lending terms
Definition

An application fee is a charge some lenders apply to process and review a loan or credit application. It is generally paid at the time of applying and may be charged whether or not the application is approved.

An application fee covers a lender's cost of accepting and evaluating a request for credit, which can include verifying information and reviewing the applicant's profile. It is typically a flat amount disclosed before you apply. Depending on the lender and product, an application fee may be separate from an origination fee, which is charged for processing and funding an approved loan, or it may be combined with other upfront charges. In some cases the fee is nonrefundable even if the application is declined, while in others it is waived or credited if the loan is funded. Whether an application fee applies is stated in the lender's fee disclosure.

Source: [Truth in Lending Act (Regulation Z), 12 CFR §1026.4](https://www.consumerfinance.gov/rules-policy/regulations/1026/4/). This definition is general educational information, not legal or financial advice.
Related

- [Origination fee](/glossary/origination-fee)
- [Finance charge](/glossary/finance-charge)
- [Loan FAQs](/faqs)
- [Personal loans](/services/personal-loans)
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