What are title service fees?

Title insurance can provide protection if someone later sues and says they have a claim against the home. Common claims come from a previous owner’s failure to pay taxes or from contractors who say they were not paid for work done on the home before you purchased it.

Lender’s title insurance is usually required to get a mortgage loan. Title service fees include the title search fee, the premium for the lender’s title insurance policy, and other costs and services associated with issuing title insurance. In most states, the fee for conducting your closing is also a part of the title service fees.

Title service fees are listed in section B or C of page 2 of your Loan Estimate (and in section B or C of page 2 of your Closing Disclosure). If the title services are listed in Section C, you can shop for them separately.

If you choose to purchase owner’s title insurance, it will be listed in section H of your Loan Estimate.

See an interactive sample Loan Estimate form.

Note: You will not receive a Loan Estimate or Closing Disclosure if you are shopping for:

• A reverse mortgage
• A home equity line of credit (HELOC)
• A manufactured housing or mobile home loan not secured by real estate
• A subordinate loan through certain types of homebuyer assistance programs

For these kinds of loans, you should receive Truth-in-Lending disclosures. If you are shopping for a reverse mortgage, you will also receive a Good Faith Estimate (GFE) and a HUD-1 or HUD-1A Settlement Statement. Title service fees are listed in Block 4 of your GFE (and Line 1101 of your HUD-1 settlement statement).

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