A Loan Estimate is the standardized three-page form a lender must send you within three business days of receiving your mortgage application. It spells out the offer in plain terms: interest rate, monthly payment, projected closing costs, cash needed at closing, and whether the rate or payment can change later.
The magic is in the word standardized. Every lender uses the exact same layout, so you can lay three Loan Estimates side by side and compare them line for line — same boxes, same order, no creative packaging. That makes it the single best tool for shopping lenders.
A few things to check when you get one:
- The rate, and whether it's locked or still floating
- Origination charges (Section A) — fees the lender itself controls
- Cash to close, so there's no surprise at the closing table
Getting a Loan Estimate doesn't commit you to anything, and requesting several doesn't meaningfully hurt your credit when done within a short shopping window. Some numbers on it are held to strict accuracy rules while others can shift — the final figures arrive later on the Closing Disclosure. For the fee-by-fee breakdown, see closing costs explained.