Mortgage Lender Fees: Loan Estimate Sections A Through C
A practical way to separate lender-controlled charges from required third-party services and compare offers using the same transaction assumptions.
Short answer: Loan Estimate Section A contains origination charges. Sections B and C contain required services, divided by whether the borrower may shop for the provider. A fee comparison is incomplete unless the rate, APR, lender credits, cash to close, and five-year cost use the same loan assumptions.
Key facts
| Section A | Origination charges such as points and applicable lender or originator fees |
| Section B | Services the borrower cannot shop for |
| Section C | Services the borrower can shop for |
| Lender credits | Reduce upfront costs but can be tied to a higher rate |
| Best comparison | Same loan, same lock assumptions, rate, APR, credits, cash to close, and five-year cost |
Section A: origination charges
CFPB's Loan Estimate guidance identifies application, origination, underwriting, processing, verification, and rate-lock fees as possible origination charges. Discount points also appear in Section A when the borrower pays upfront for a rate below the lender's par pricing for that transaction.
Kellibrooke does not add a processing fee. Under Kellibrooke's standard lender-paid structure, borrower-paid Section A is generally empty unless the borrower voluntarily selects discount points for a below-par rate or a rare file-specific lender or originator charge applies. The actual Loan Estimate controls, and a borrower should ask about any line that appears.
Section B: services you cannot shop for
Section B contains required services for which the creditor does not permit the borrower to choose the provider. Depending on the file, these can include appraisal, credit, flood determination, tax monitoring, verification, or other required services.
A low Section A does not make Sections B and C disappear. These third-party charges should be separated from compensation and origination charges so a borrower can tell which costs reflect the provider choice, the property, or the lender's process.
Section C: services you can shop for
Section C contains required services for which the borrower may select a provider, generally subject to the creditor's written provider list and instructions. Title and settlement services can appear here in a purchase transaction. Shopping can change the total, but the service, timing, and lender requirements still must be satisfied.
For Texas title charges, read the Texas title-fee guide. For the complete disclosure map, use the closing-cost hub.
Points, lender credits, and par pricing
Points and lender credits are opposite pricing adjustments. Paying discount points can reduce the rate relative to the lender's available par pricing. Accepting a lender credit can reduce upfront costs but may increase the rate. Neither should be judged without the expected time in the loan.
Ask for alternatives with no points, with the proposed points, and with a lender credit when those choices are available. Compare the breakeven period and the Loan Estimate's five-year cost. A lower rate with large points may cost more over a short holding period, while a higher-rate credit structure may cost more if the loan is kept long enough.
How to compare two Loan Estimates
- Confirm the same price, loan amount, down payment, occupancy, property type, and loan term.
- Confirm whether each rate is locked and use the same lock period.
- Compare Section A line by line, including points.
- Separate Sections B and C from lender-controlled pricing.
- Compare lender credits and estimated cash to close.
- Compare APR and the five-year principal, interest, mortgage insurance, and loan-cost figures.
- Ask what assumption explains each material difference.
The mortgage-offer comparison worksheet provides a structured side-by-side review.
Questions and answers
What fees appear in Loan Estimate Section A?
Section A contains origination charges, which can include points and applicable application, origination, underwriting, processing, verification, or rate-lock fees.
Does Kellibrooke charge a processing fee?
No. Kellibrooke does not add a processing fee. Other lender, third-party, title, government, prepaid, escrow, and transaction charges may still apply.
Is a lender credit free?
No. A lender credit reduces upfront costs but can be associated with a higher interest rate. Compare the credit, rate, APR, payment, and expected holding period.
Is the lowest Section A total always the best offer?
No. Compare the same transaction assumptions, rate, APR, credits, cash to close, and five-year cost. A fee can be shifted into rate pricing or points.