What Is Loan Estimate?

A Loan Estimate is a standardized 3-page form your lender must give you within 3 business days of receiving your mortgage application. It outlines your estimated interest rate, monthly payment, total closing costs, and other key loan terms in a uniform format that makes it easy to compare offers from different lenders.

For example, if you apply for a $300,000 30-year fixed mortgage, your Loan Estimate might show a 6.75% interest rate, a $1,946 monthly principal-and-interest payment, and $9,200 in estimated closing costs. Page 2 breaks down every cost—origination fees, appraisal, title insurance, taxes, and prepaids. Receiving Loan Estimates from at least 3 lenders can save you thousands over the life of your loan.

Key Facts

• Delivery deadline: Within 3 business days of your completed mortgage application
• Pages: 3 standardized pages covering loan terms, projected payments, and costs
• Not a commitment: Receiving a Loan Estimate does not obligate you to use that lender
• Comparison tool: The uniform format is designed so you can easily compare multiple lender offers
• Tolerance rules: Certain fees cannot increase at closing; others are limited to a 10% aggregate increase
• Required by: The TILA-RESPA Integrated Disclosure (TRID) rule, effective since October 2015

Frequently Asked Questions

Can the numbers on my Loan Estimate change by closing?

Yes, but federal rules limit how much certain costs can increase. Your origination charges and transfer taxes cannot increase at all. Third-party services where the lender selected the provider are capped at a 10% aggregate increase. Your Closing Disclosure will reflect the final numbers.

How many Loan Estimates should I get?

The CFPB recommends getting Loan Estimates from at least 3 lenders. Comparing rate, APR, and total closing costs side by side can save you $1,500 or more over 30 years. Multiple mortgage inquiries within a 14–45-day window count as a single credit inquiry.

What triggers the 3-day delivery requirement?

A lender must send a Loan Estimate within 3 business days of receiving six key pieces of information: your name, income, Social Security number, property address, estimated property value, and desired loan amount.