What is a Loan Estimate?

The Loan Estimate is a three-page form that lenders must provide within three business days of receiving your application. It shows the loan terms, projected payments, and closing costs in a standard format so you can compare offers from different lenders.

Key sections include the loan amount, interest rate, monthly principal and interest, total monthly payment, closing costs (itemized and total), and cash to close. Use the same loan scenario when requesting estimates so the numbers are comparable.

The Loan Estimate is not a final commitment; terms can change if your application or the property changes. But it’s the right document to use when comparing initial offers side by side.

You can enter the key numbers from each Loan Estimate into a comparison tool so you can view them in one place and see how each offer stacks up.