The Loan Estimate is a standardized 3-page document that every lender is required by federal law to give you within 3 business days of receiving your loan application. It shows your estimated interest rate, monthly payment, total closing costs, and 5-year cost summary.

Because the format is identical across lenders, the Loan Estimate is your best apples-to-apples comparison tool. Get LEs from at least three lenders on the same day, lock the same rate scenario, and compare them line by line.

If the lender's final numbers at closing exceed the LE by more than the legal tolerance (typically 10% for most fees, 0% for lender fees), they have to pay the difference. Save your LE — it's a legal document.

Related terms

Process

Closing Disclosure

The final 5-page disclosure showing your exact mortgage terms and costs, delivered at least 3 days before closing.

Learn More
Costs & Pricing

APR

The all-in annual cost of a mortgage, including interest plus most upfront fees.

Learn More
Costs & Pricing

Closing Costs

The fees and charges paid at closing on top of the down payment, typically 2–5% of the purchase price.

Learn More
Process

Rate Lock

A guarantee from the lender that your interest rate and points won't change for a set period.

Learn More

Have more mortgage questions?

Talk to a 4Homes mortgage expert who can walk you through your situation and find the best loan for you.