01Loan Estimate Guide

What Is Section C on a Loan Estimate?

Section C is the part of page 2 of your Loan Estimate labeled Services You Can Shop For. It identifies mortgage closing services your lender requires but allows you to shop for separately.

02

Where to find it

Look on page 2 under Loan Costs.

The Loan Costs section of the Loan Estimate is divided into categories. Section A covers Origination Charges. Section B is Services You Cannot Shop For. Section C is Services You Can Shop For.

If a service appears in Section C, that is your signal that shopping for another provider may be possible.

Section C in plain English

Your lender requires the service. You may be able to choose who provides it.

That distinction matters because different providers may charge different amounts for comparable closing services.

03

Common Section C services

The exact services depend on your loan and transaction.

Section C can include third-party settlement services such as title-related services, settlement or closing services, and other required services the lender permits you to shop. The specific names and charges on your Loan Estimate may differ.

Title search

Research used to identify ownership records, liens, or other title matters.

Lender's title insurance

A title insurance policy that protects the lender's interest, when listed as a shoppable service on your Loan Estimate.

Settlement or closing services

Services related to coordinating and completing the closing when your lender permits you to shop for the provider.

Examples are illustrative. Use the actual Section C on your Loan Estimate to identify the services your lender has listed as shoppable.

04

Your lender's provider list

You may have more than one place to look.

Your lender should provide a written list of providers for the services you can shop. You can compare providers on that list and may also be able to consider another provider. If you want to use a provider that is not on the lender's list, check with your lender because the lender may need to agree to work with that provider.

05

Why shopping can matter

Section C prices can vary from provider to provider.

The amount on the Loan Estimate is an estimate for the transaction. Another eligible provider may charge less for the same or comparable service. The potential savings come from comparing the amount on your Loan Estimate with a lower provider price.

There is no guarantee that another provider will be cheaper or that a particular provider can be used for your transaction. The goal is to compare before you decide.

06

How to shop Section C

A simple five-step approach.

  1. 01

    Find Section C

    Open page 2 of your Loan Estimate and locate Services You Can Shop For.

  2. 02

    Write down the service and estimated charge

    Use the amount shown on your Loan Estimate as the starting point for the comparison.

  3. 03

    Compare eligible providers

    Look at providers that can perform the same service in your market and for your transaction.

  4. 04

    Check with your lender when needed

    Confirm any lender requirements before relying on a provider that is different from the lender's list.

  5. 05

    Compare the final charge

    After closing, use the Closing Disclosure to see what you actually paid for the applicable services.

07

Section C and your Closing Disclosure

The final document tells you what happened at closing.

Your Closing Disclosure separates services based on whether the borrower shopped for them. Reviewing the applicable final charges is how you can confirm whether a provider change actually reduced the amount you paid.

See How ClosingCash Confirms Final Savings

How ClosingCash helps

Start with the Section C you already have.

ClosingCash identifies the relevant Section C services on your Loan Estimate and shows where shopping may be worthwhile, so you do not have to manually sort through every closing-cost line.

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Page information

Written by Matt Stein, Founder of ClosingCash

Updated

Sources and editorial note

This page provides general educational information. Loan requirements, available services, pricing, provider availability, and lender acceptance can vary by transaction. ClosingCash does not guarantee savings or outcomes.

Read our editorial and corrections policy, or email hello@shopmyclosingcosts.com to suggest a correction.