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# Why is the default for Variance Type set to 10% when the Section is set to Services Borrower Can Shop For within the application phase?

The variance applicable for a fee that was in the Services Borrower Can Shop For section of the Loan Estimate is dependent on whether the borrower did or did not shop for the service. If the borrower did shop for the service, variance is permitted. If the borrower did not shop for the service, the variance is 10%.

When a fee with a Section of Services Borrower Can Shop For is added in the application phase, we default the Variance Type to 10%, so you know that a variance restriction could be applicable to that fee when the transaction is switched to the closing phase.