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What is the difference between lender fees and third-party closing costs?

Short answerLender fees, like origination and underwriting charges, go to the lender and can be shopped or negotiated. Third-party costs, like appraisal, title insurance, and recording fees, go to outside providers and are harder to change. Your Loan Estimate separates them into sections so you can see exactly who gets paid what.
Reviewed by Juan Fernando Romero, NMLS 2557318Updated

The details

You can shop for some third-party services, such as title insurance in many states, and the Loan Estimate tells you which ones are shoppable.

Prepaid items like insurance and tax escrows are not fees at all; they are funds collected for future bills.

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