Mortgage glossary
Loan Estimate
Definition: The Loan Estimate is a standardized three-page federal form a lender must provide within three business days of a mortgage application, summarizing the loan's terms, projected payments, and closing costs.
The Loan Estimate lists the loan amount, rate, loan type, whether the rate is locked, estimated cash to close, and each category of fees. Because every lender uses the same form, borrowers can compare offers side by side.
Look at the origination charges in Section A and total loan costs, not just the rate. Certain fees on the Loan Estimate are protected and can change only within federal tolerance limits. A revised Loan Estimate is issued when there is a valid change, such as a new loan amount or a lock.
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Reviewed by Kyle Richardson, NMLS #863464. General information, not advice for your specific situation. All glossary terms
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