Closing costs are just one important aspect of buying a home — here's what you need to know about lender fees

If you're thinking about beginning the homebuying process, you're probably already aware that there are many moving parts that go into it. On top of saving for a down payment, there are also a bevy of additional costs you'll need to be prepared for.

Closing costs are just one set of additional fees that go into finishing up your loan process. Lender fees, likely a lesser known aspect of buying home, are also extremely important to understand.

"Lender fees" is an umbrella term that refers to the various charges associated with processing, approving and funding your loan. These types of fees are essentially a subset of closing costs for your home purchase.

While these kinds of fees typically include an application fee, origination fee, processing fee and underwriting fee, the full list of what counts as lender fees will vary depending on the financial institution you're getting your loan from.

Lender fees can wind up amounting to about 1% to 2% of the loan amount. According to ValuePenguin, homebuyers pay an average of $1,387 in lender fees when buying property. While that may not sound like a ton of money, especially compared to the amount you're putting upfront as a down payment, these fees can still be significant when you're buying a home on a smaller budget.

Keep in mind that there will be also a host of other fees that make up your closing costs, including a credit reporting fee, a transfer fee, title insurance, a rate lock fee, and a recording fee, among others. According to Rocket Mortgage, closing costs can end up being up to 6% of your loan amount. In other words, if you take on a $400,000 mortgage, you'll have to pay up to $24,000 in closing costs alone.

If you're hoping to save on lender fees, consider shopping around for mortgage lenders whose lender fees encompass fewer charges.

Ally Bank, ranked as one of the best mortgage lenders by Select, actually doesn't charge any application fees, origination fees, processing fees, or underwriting fees. While the company may instead charge an appraisal fee and recording fee, and charge for title search and insurance, you'll at least be saving a bit on the other charges.

It'll take some shopping around to find lenders that reduce your lender costs as much as possible. Even if there's a good chance you'll end up with a slew of lender fees, you might still be able to save money in other areas.

SoFi members who apply for a SoFi mortgage can get a $500 discount on their home loan — and those who purchase a home through the SoFi Real Estate Center, which is powered by HomeStory, can receive up to $9,500 in cash back.

For more information on the homebuying process, check out these helpful guides about the best mortgage lenders for jumbo loans and getting your finances in order before applying for a mortgage.

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