What is Loan Estimate?
A Loan Estimate is a standardized form that lenders must provide within three business days of a mortgage application, detailing loan terms and estimated costs.
The Loan Estimate is a required disclosure that summarizes the loan amount, interest rate, monthly payment, and closing costs. Borrowers receive it early in the application process to compare offers. Watch for changes between the Loan Estimate and the Closing Disclosure; certain fees cannot increase beyond specified tolerances. Review the projected payments, escrow amounts, and whether the rate is locked. The Loan Estimate is not a final approval or commitment to lend.
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