Third-party closing fees: appraisal, title, and the rest
Beyond the lender's own charges, a refinance buys services from appraisers, title companies, attorneys in some states, and government recording offices. These appear in Sections B and C of the Loan Estimate. Some you cannot shop for; some you can, and the CFPB requires the lender to tell you which.
The usual third-party lines
Section B services are ones you cannot shop for; the lender picks the provider. Section C services are ones you can shop for, and the lender must give you a list of providers. Shopping Section C, especially title, is one of the few painless ways to cut closing costs, because the service is standardized and the price is not.
| Fee | What it is | Can you shop? |
|---|---|---|
| Appraisal | An independent valuation of the home | Rarely; the lender orders it, but the fee should match local norms |
| Credit report | The credit pull used in underwriting | No, but it is small |
| Title search | Checking ownership and liens on the property | Yes in many states |
| Title insurance (lender's policy) | Protects the lender's interest in the title | Yes in many states; prices vary more than people expect |
| Settlement or attorney fees | Conducting the closing | Depends on state practice |
| Recording fees | The government charge to record the mortgage | No; set by the county or state |
| Transfer taxes | State or local tax on the transaction where charged | No; set by law and often zero on refinances |
Tolerance rules protect you, partly
Federal rules limit how much final charges can exceed the Loan Estimate for many of these items. Some charges cannot increase at all, some can rise by up to 10% in total, and some, like recording fees and your own choices, are estimated more loosely. If a final number jumps beyond its tolerance, the lender generally owes you the difference. Compare the Closing Disclosure against the estimate line by line.
How to shop Section C without slowing the closing
Start by asking one question early: which Section C services may I shop for, and may I have the required provider list? That list exists because prices for standardized services genuinely differ. The example on this page found title quotes $700 apart for the same lenders policy and settlement work in the same county. Two phone calls, made while the file is still young, are usually the cheapest closing cost reduction available on a refinance.
Shop the standardized lines first. Title search, the lenders title policy where your state allows shopping, and settlement or attorney fees where state practice permits choice are the lines with real spread. Appraisal and credit report fees are set by the lender or the market around it, and recording fees and transfer taxes are set by government. Spending your energy where choice exists keeps the closing on schedule and the savings real.
Finish by comparing the Closing Disclosure against the Loan Estimate line by line. Federal tolerance rules limit how far many final charges can rise above the estimate, and a fee that appears at closing without appearing on the estimate deserves a direct question. Carry only the true third-party total, not prepaids or escrow, into your break-even math.
Worked example
A homeowner who priced title services found quotes $700 apart for the same lender's policy and settlement work in the same county. Nothing about the loan changed. The only effort was two phone calls using the provider list the lender was required to hand over.
The trap most people miss
Assuming the lender's default title or settlement provider is competitively priced because it is convenient. Default and cheap are unrelated; the provider list exists because prices genuinely differ.
Checklist
- Ask which Section C providers you may shop, and get the required provider list.
- Get two title or settlement quotes; it is the largest shoppable line on most refinances.
- Compare the Closing Disclosure to the Loan Estimate within the tolerance categories.
- Question any new fee that appears at closing but never appeared on the estimate.
Common questions
Can I use my existing owner's title policy to save money?
Sometimes. Ask about reissue rates, which discount a new lender's policy when a prior policy exists. Availability and the discount depend on the state and how long ago the prior policy was issued.
Why did my appraisal come back as a waiver?
Some refinances qualify for an appraisal waiver based on prior valuation data. A waiver removes the appraisal fee and speeds closing. It does not change your loan terms; it just means the valuation was accepted without a new visit.
What is the difference between Sections B and C?
Section B lists services you cannot shop for; the lender selects the provider. Section C lists services you can shop for, and the lender must give you a provider list. Shopping Section C, especially title and settlement where your state allows it, is one of the few straightforward ways to cut closing costs because the service is standardized and prices vary.
Can shopping for title delay my refinance?
It should not when you start early. Ask for the provider list at application, get quotes while underwriting runs, and confirm your choice well before closing. The delay risk comes from raising the question in the final week. Early shopping compares prices; late shopping compares deadlines.
Sources and verification
- Consumer Financial Protection Bureau: Explains Loan Estimate Sections B and C, shoppable services, and charge tolerances. Checked October 4, 2026.
Title and settlement practice varies a great deal by state, including attorney states. Your Loan Estimate and state practice decide what applies to your loan.