Services You Cannot Shop For is the Loan Estimate section for required third-party services whose providers are selected through the lender.
Services You Cannot Shop For is Section B of the Loan Estimate, listing required third-party services whose providers are selected through the lender’s process rather than by the borrower.
The borrower may pay the charge without controlling the provider. This is common where independence, standardized lender relationships, or loan-program administration matters, such as appraisals, credit reports, flood determinations, and tax-status services.
The borrower still has a form of shopping power: compare the entire Section B subtotal across lenders. A borrower cannot usually substitute a personally selected appraiser into one lender’s file, but can compare that lender’s appraisal and other required-service estimates with competing Loan Estimates.
Absent a permitted revision or changed circumstance, required third-party services for which the borrower is not allowed to shop generally fall under zero-tolerance fee-change rules. The borrower should ask about an increase rather than assume the lender-selected provider can charge any final amount.
The Loan Estimate lists these services in Section B. On the Closing Disclosure, they generally appear under Services Borrower Did Not Shop For, with payer and timing columns.
Borrowers should verify that the service is recognized, was required for the selected loan, and does not duplicate another line. The lender should explain unfamiliar government, mortgage-insurance, or title-related charges.
| Disclosure label | What it tells the borrower |
|---|---|
| Services you cannot shop for | The service is required and the borrower generally does not choose the provider |
| Services You Can Shop For | The service is required, but the borrower may be able to choose from allowed providers or shop independently |
| Loan Costs | The broader section where these service charges appear |
| Zero-Tolerance Charges | Fee-change rule generally applicable to required services when shopping is not permitted |
| Fee label | Why it may appear here |
|---|---|
| Appraisal Fee | The lender usually orders the valuation rather than letting the borrower choose the appraiser |
| Credit Report Fee | The lender needs credit information for qualification and underwriting |
| Tax Service Fee | The lender or servicer may need tax monitoring tied to the collateral |
| Flood Certification Fee | The lender needs a flood-status check for the property |
| Upfront mortgage-insurance or program fee | The loan type may require a charge set by an insurer or government program |
Two lenders quote the same rate and loan amount. Lender A estimates $1,050 for Section B services; Lender B estimates $1,400. The borrower cannot choose Lender B’s appraiser or credit vendor, but can include the $350 difference when comparing the two loan offers.
Services you cannot shop for differ from Services You Can Shop For because the borrower generally does not control provider selection in the non-shoppable section.
They differ from Closing Costs because closing costs are the broad total, while this label is a specific form section inside the loan-cost area.
They also differ from Zero-Tolerance Charges. Section B is a service classification; zero tolerance is a related fee-change rule. A valid changed circumstance can still support a revised estimate.