Connie: John is right, yet again. What fee? What for? To whom paid?
First, read your contract. It will tell you of any fees that you owe the seller. Then there might be a fee that the mortgage company wants. Note that I say "wants." I'd tell them that you want any fees returned that were you paid that were unnecessary, such as an appraisal fee generated BEFORE they had checked your credit and came up with the need for a co-signer. Finally, there may be a fee the attorney is charging you for having gone into the deal as far as he/she has. It could be that it is less than any fee quoted for counsel in the entire deal. This may be a nice way of getting you to at least chip in for the time the attorney has spent.
You might ask him/her if they would let the fee go, since it is obvious that you are not rolling in dough. It can't hurt to ask.
Best regards and I hope that in the near future you will be better able to qualify for a loan. In fact, if you are really intent, you might talk to other lenders. Each one is somewhat different and you might be able to find financing even now.