What Is a Loan Estimate? Page-by-Page Guide | LoFi Rate

A Loan Estimate is the 3-page form lenders must give you within 3 business days of applying. See what each section means and what to check.

What Is a Loan Estimate? Page-by-Page Guide | LoFi Rate

A Loan Estimate is the 3-page form lenders must give you within 3 business days of applying. See what each section means and what to check.

What Is a Loan Estimate? A Page-by-Page Guide

When do you get a Loan Estimate?

What's on each page of the Loan Estimate?

How should you compare two Loan Estimates?

Can the numbers on a Loan Estimate change?

How long is a Loan Estimate good for?

What's the difference between a Loan Estimate and a Closing Disclosure?

Frequently asked questions

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What Is a Loan Estimate?

Short answer: A Loan Estimate is a standard 3-page form that a lender must give you within 3 business days after you apply for most mortgages. It shows the estimated interest rate, monthly payment, closing costs, and other loan terms in the same layout every lender uses. Because the form is standardized, it is the easiest way to compare offers side by side.

The Consumer Financial Protection Bureau (CFPB) created the Loan Estimate under the TILA-RESPA Integrated Disclosure rule (often called "TRID"). It replaced the old Good Faith Estimate and the early Truth-in-Lending disclosure for most loans with applications taken on or after October 3, 2015.

You get one within 3 business days after a lender receives your application. Under the rule, an "application" is six pieces of information:

Your name

Your income

Your Social Security number (so the lender can pull credit)

The property address

An estimate of the property's value

The loan amount you want

A lender can't require you to send documents like pay stubs before it gives you a Loan Estimate. It also can't charge you any fee other than a reasonable credit-report fee before you get the Loan Estimate and say you intend to proceed.

Compare offers from the same day, for the same loan amount, loan type, and term, and with the same lock status. Then:

Start with Section A. Origination charges and points are the costs a lender controls most directly.

Check Section J for lender credits. A credit lowers your closing costs but usually comes with a higher rate.

Compare the APR and the "In 5 Years" row on page 3. These fold fees into the comparison over time.

Ignore Sections E–H when judging the lender. Taxes, prepaids, and escrow mostly depend on the property and the closing date.

Confirm the lock. An unlocked estimate can change.

Our guide to comparing two Loan Estimates walks through this step by step.

Yes, but within limits called tolerances :

A lender can issue a revised Loan Estimate for a valid "changed circumstance," such as a change in loan amount, a low appraisal, or a rate lock. If your rate was not locked and you lock later, the lender must send a revised Loan Estimate within 3 business days of the lock.

If you don't tell the lender you intend to proceed within 10 business days , the lender is no longer bound by the estimated closing costs. The interest rate is only firm if it's locked.

The Loan Estimate comes early, when you're shopping. The Closing Disclosure gives your final terms, and you must receive it at least 3 business days before closing. Compare the two line by line. The Closing Disclosure uses the same section letters, so the match-up is straightforward.

Not sure whether your offer is competitive? Upload your Loan Estimate for a free, plain-language review, or request a broker match to compare options from participating licensed mortgage professionals.

Sources: CFPB, "Loan Estimate explainer" and TILA-RESPA Integrated Disclosure rule (12 CFR 1026.19(e), 1026.37).

General education only. LoFi Rate is an independent matching service, not a lender. We don't guarantee rates, terms or approval.

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