Lender fees
These are what your lender charges to process, approve and fund your loan. Names vary from lender to lender.
- Origination or underwriting fees
- Processing or application fees
- Discount points, if you choose to buy a lower rate
Third-party fees
These pay outside companies that do work on your loan. Your lender arranges some of them, and you can pick others.
- Appraisal
- Credit report and flood certification
- Title search and title insurance
- Settlement or closing agent
- Survey, where required
Government fees and other costs
Recording fees and transfer taxes go to your state or local government. Prepaids, such as prepaid interest and your first year of homeowners insurance on a purchase, and escrow deposits for future taxes and insurance, are also separate from lender and third-party fees. They're part of owning the home rather than the cost of the loan.
Where they appear on your Loan Estimate
- Section A, Origination Charges: lender fees
- Section B, Services You Cannot Shop For: such as appraisal and credit report
- Section C, Services You Can Shop For: such as title and settlement
- Section E, Taxes and Other Government Fees: recording and transfer taxes
- Sections F and G: prepaids and the initial escrow deposit
What ZERO Closing Costs covers
When a loan meets the offer terms, CapCenter pays or waives the origination fee, credit report, flood certification, tax service, title search, wire and delivery fees. It also covers lender and owner title insurance, survey, settlement agent and appraisal fees when they're required and provided by an approved agent.
It doesn't cover escrow deposits, prepaid interest, government recording fees and taxes, upfront mortgage insurance or VA funding fees, or inspections. Discount points are optional. See Offer details.
Comparing lenders
Look at Sections A, B and C together, not just the rate. A low rate with high lender and third-party fees can cost more than it looks. Comparing Loan Estimates from the same day on the same loan makes the comparison fair.
Ask each lender which fees they pay or waive and which ones you'll still owe. A clear answer in writing makes it easier to compare offers with confidence.
