What's the difference between lender fees and third-party fees?

What's the difference between lender fees and third-party fees?

You want to understand how lender fees differ from third-party fees on your closing costs breakdown. Both types appear on your Closing Disclosure, but they come from different sources and cover different services.

Lender fees come directly from your mortgage company and cover the work they do to process your loan. These typically include the origination fee, underwriting fee, and application fee. Your lender sets these amounts and receives the payment.

Third-party fees come from outside companies that provide services during your home purchase. These cover things like the appraisal, title insurance, home inspection, and attorney fees. Your lender collects these fees at closing but passes the money to the service providers.

Check your Loan Estimate and Closing Disclosure to see how fees are categorized. Section A shows lender fees, while Sections B through H show third-party costs. If any amounts don't match between your Loan Estimate and Closing Disclosure, or you have questions about specific fees, ask your lender for a breakdown of what each fee covers and who receives the payment.