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Shopping for Settlement Services and Comparing Title-Insurance Quotes

This guide presents selected U.S. government consumer education from CFPB. References to “we” or “us” in the source material refer to the issuing agency. Source dates and links appear below.

Shop for title insurance and other closing services

Closing costs can add up to be thousands of dollars, and closing costs estimates can vary widely among lenders. Some of the closing costs are paid to third-party providers that you can shop for separately.

Lenders or real estate agents might recommend providers they have a relationship with, but those providers might not offer the best deal. You can often save money by shopping around for closing services.

Title services are the largest costs in this category, and in most cases you can shop for them. Title services include title insurance, title search, and other costs and services associated with issuing title insurance. In most parts of the country, title services also include the fee for the closing agent who conducts your closing.

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What to do now

Use your Loan Estimate to identify services you can shop for

You can shop for the services listed on section C of page 2 of your Loan Estimate (see a sample form). The specific services that you can shop for vary from lender to lender.

Identify potential closing service providers

Your lender is required to give you a list of companies in your area that provide the services you can shop for. You may want to use one of the companies on the list. Or, you may be able to choose companies that are not on the list if your lender agrees to work with your choice.

  • Some providers may offer more than one type of service.

Contact closing service providers

  • Ask for a price quote and references from recent customers.
  • Contact the references. Ask how responsive the company was to their questions and how the company handled problems.

Consider whether you want to purchase owner’s title insurance

Most lenders require you to buy a lender’s title insurance policy, which protects the amount they lend. You may want to buy an owner’s title insurance policy, which protects your financial investment in the home.

Choose your closing service providers and notify your lender

Choose providers that have competitive prices and a good reputation.

Schedule your closing

When choosing a date, make sure to consider:

  • Does your purchase contract specify a particular deadline for closing?
  • Is there a specific date when you have to vacate your current housing?
  • When does your rate-lock expire?
  • Can your lender complete their loan approval process in time for the closing?
  • Is your closing agent busy with other closings at the same time? There may be more people trying to close near the end of the month. Consider scheduling your closing for the beginning or the middle of the month.

What to know

The person handling your closing is often one of the service providers you can shop for

The person or company who conducts the closing may differ depending on the state in which the closing occurs.

  • In most of the country, a settlement agent from a title insurance company conducts the closing.
  • In other states, particularly in the West, the person is known as an escrow agent, and the parties usually sign the documents separately (rather than meeting in person).
  • Some states, particularly in the Northeast and South, require a closing attorney from each side.
  • Ask your lender or real estate agent what the situation is in your state.

Most lenders have service providers that they use if you don’t choose your own

Don’t assume that the providers your lender selects have been chosen for low rates or good service. In fact, the default or recommended providers often may be affiliates (related companies) of the lenders, so there may be a financial incentive for the lender to recommend them. Shopping around can save you money.

The costs for closing services may feel like a drop in the bucket compared to the cost of the home, but they can add up

Research suggests that borrowers who shop around for closing services could save as much as $500 on title services alone. That’s $500 that you can put toward new paint, furniture, and other improvements to make your new home feel more your own.

State laws may require different title insurance disclosures

Depending on the state where you are buying your home, your title insurance company may give you an itemized list of fees at closing.

  • This itemized list may be required under state law and may be different from what you see on your Loan Estimate or on your Closing Disclosure. That does not mean you are being charged more.
  • If you add up all the title-related costs your title insurance company gives you, it should match the total of all the title-related costs you see on your Loan Estimate or on your Closing Disclosure.
  • When comparing costs for title insurance, make sure to compare the bottom-line total.

Visit our sources page to learn more about the facts and numbers we reference.

The process and forms described on this page reflect mortgage regulations that apply to most mortgages.

What is owner's title insurance?

Owner’s title insurance protects the homeowner if someone sues and says they have a claim against the home from before the homeowner purchased it.

What is owner's title insurance?

When you purchase your home, you receive a document usually called a deed, which shows the seller transferred their legal ownership, or “title” to their home, to you. Title insurance can protect you if someone later sues and says they have a claim against the home from before you purchased it. Legal claims could 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.

Most lenders require you to purchase a lender’s title insurance policy, which protects the amount they lend. You may want to buy an owner’s title insurance policy, which can help protect your financial investment in the home.

You can usually shop for your title insurance provider separately from your mortgage. If you shop for title insurance, you could save money. If you choose to buy owner’s title insurance, the total cost is usually lower if you use the same provider for both the lender’s policy and the owner’s policy, compared to buying them separately.

Depending on the state where you are buying your home, your settlement agent, lawyer, lender, real estate agent, or your title insurance company might give you an itemized list of fees at closing, including your title insurance cost. This could be different than what is shown on your Loan Estimate or Closing Disclosure. This does not necessarily mean you are being charged the wrong amount.

What is lender's title insurance?

Lender’s title insurance protects your lender against problems with the title to your property-such as someone with a legal claim against the home. Lender’s title insurance only protects the lender against problems with the title. To protect yourself, you may want to purchase owner’s title insurance.

Lender’s title insurance is usually required to get a mortgage loan. Lender’s title insurance protects your lender against problems with the title to your property—for example, if someone sues to say they have a claim against the home. Lender’s title insurance does not protect your investment in the home (your equity). If someone sues with a claim against your home, you are the first person responsible. The lender’s title insurance policy only covers claims that affect the lender’s loan. To protect your equity in the event of a title problem, you may want to purchase an owner’s title insurance policy.

What are title service fees?

Title service fees are part of the closing costs you pay when getting a mortgage. When you purchase a home, you receive a document most often called a deed, which shows the seller transferred their legal ownership, or “title,” to the home to you. Title service fees are costs associated with issuing a title insurance policy for the lender.

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:

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).

Why is the title insurance premium on the Loan Estimate and Closing Disclosure different from the premium listed on the paperwork I received from the title insurance company? Am I being charged more?

You're not necessarily being charged more if the amounts on your loan forms are different from your title insurance paperwork.

Depending on the state where you are buying your home, your title insurance company may give you an itemized list of fees at closing. The itemized list of fees required under state law may be displayed differently than the same fees on the Loan Estimate or on the Closing Disclosure. That does not necessarily mean you are being charged more. If you add up all the title-related costs your title insurance company gives you, it should match the totals of all the title-related costs you see on the Loan Estimate or on the Closing Disclosure. When comparing costs for title insurance, make sure to compare the bottom-line total.

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

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.

Sources and publication details

The federal agency source text is U.S. government work in the public domain. Fynoptic selected, adapted, and formatted it for this guide. No agency endorsement is implied. Follow the linked sources for current program details and the rules applicable to your circumstances.

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