Some fees depending on the lender that the borrower is using may require items to be paid in advance. Some of these fees required to be paid in advance are as follows:

Appraisal Fee - sometimes the appraisal fee will be required to be paid in advance, many lenders do this because they feel it will keep the borrower from shopping around for other lenders

Pre-Paid Interest - since mortgage loans are usually due on the first of the month, and closings can be at anytime of the month, interest will accrue up until the first, as a result the borrower will have to pay the interest accrued during this time

Homeowner's Insurance - assures the owner that insurance will cover any damage to the property or any other items

VA Funding Fee - this fee guarantees the loan for the veteran applying for it

Up-Front Mortgage Insurance Premium (UFMIP) - this fee is charged on FHA purchases of Single Family Residences (SFR) or Planned Unit Developments (PUD) and is 2.25% of the loan balance

Mortgage Insurance - covers the lender and covers portions of the losses when borrowers default on their loans, it is important to note, that it is rare for borrowers to pay mortgage insurance premiums in advance