What must a lender charge when providing a loan estimate?

When a lender provides a loan estimate, it is required to include a credit report fee. This fee is essential because the lender needs to assess the borrower's creditworthiness before approving a loan. The credit report provides critical information about a borrower's credit history, such as past borrowing behavior, payment patterns, outstanding debts, and credit scores.

The inclusion of the credit report fee in the loan estimate is in line with the requirements under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). These regulations ensure that consumers receive transparent and accurate information regarding the costs that they will incur during the loan process, allowing them to compare offers from different lenders and make informed decisions.

Other potential fees that lenders might assess, such as processing application fees, origination fees, or closing coordination fees, might not be required to be included in the loan estimate as they are not directly related to the necessary information needed to evaluate creditworthiness. Thus, while these fees can be part of the total cost of obtaining a loan, they do not carry the same regulatory requirement for disclosure in the initial loan estimate as the credit report fee does.