Every lender uses the same form, so you can line offers up side by side. It isn’t an approval: when you get one, the CFPB notes, the lender hasn’t yet approved or
When do you get a Loan Estimate?
Within three business days after the lender receives your application. Under federal rules, an application is six pieces of information: your name, income and Social Security number, the property address, an estimate of its value and the loan
Until you have it, the only fee a lender can charge you is for pulling your credit report. Other fees, such as an application or appraisal fee, can come only after you receive the estimate and tell the lender you
What’s on each page?
Page 1 shows the loan amount, interest rate and monthly payment and whether they can change, any prepayment penalty or balloon payment, estimated closing costs and cash to close. It also says whether your rate is locked,
Page 2 itemizes the closing costs: what the lender charges, services you can and can’t shop for, taxes and government fees, prepaid items and the first deposit into your escrow account. Page 3 has comparisons, including the annual percentage rate and what you’ll have paid in the
How do you compare Loan Estimates?
Ask for them on the same day if you can, for the same loan amount, loan type and down payment, since rates move daily. Then compare the origination charges, the rate and the discount points you’d pay for it, the APR, and the five-year total
Shopping doesn’t cost your credit much: the CFPB says multiple mortgage credit checks within 45 days are recorded as
Can the costs change before closing?
Some can. Fees paid to the lender or its affiliates and transfer taxes generally can’t go up unless your circumstances change. Recording fees and some third-party services chosen from the lender’s list can rise up to 10% in total. Prepaid interest, insurance and escrow deposits can change
When something real changes, such as the loan amount, the appraisal or your income documentation, you’ll get a revised Loan Estimate. Locking your rate also triggers one within three business days. Your Closing Disclosure arrives at least three business days before closing so you can check it against
Comparing two offers on a $350,000, 30-year loan
| Lender A rate, no points | 6.50% |
|---|---|
| Lender A principal and interest | $2,212/month |
| Lender B rate, with 1 point | 6.25% |
| Cost of 1 point (1% of the loan) | $3,500 |
| Lender B principal and interest | $2,155/month |
| Monthly savings with Lender B | $57 |
| Months to earn back the point | About 61 |
Paying the point only pays off if you keep the loan for more than about five years, which is why the five-year comparison on page 3 is worth reading. Rates here are
Common mistakes
- Comparing a locked estimate from one lender with a floating
one from another. - Looking only at the rate and ignoring points
and origination charges. - Paying an application fee before you’ve received
the Loan Estimate. - Treating the Loan Estimate as
a loan approval.
Questions
Is a Loan Estimate a commitment to lend?
No. It shows the terms a lender expects to offer if you go ahead. Approval comes later, after underwriting.
Do you have to accept a Loan Estimate?
No. You aren’t committed to a lender until you tell it you intend to proceed, so you can collect several
How is a Loan Estimate different from a Closing Disclosure?
The Loan Estimate comes at the start, within three business days of applying. The Closing Disclosure shows the final terms and arrives at least three business
Sources
- CFPB: What is a Loan Estimate?
- CFPB: Loan Estimate explainer
- CFPB: How much does it cost to receive a Loan Estimate?
- CFPB: Can my final mortgage costs increase from my Loan Estimate?
- 12 CFR 1026.19: Loan Estimate and Closing Disclosure timing
Written and checked by the Broker & Agent team on October 2, 2026. General information, not legal, tax or lending advice. Something out of date? Tell us.