What Is a Loan Estimate? Page-by-Page Guide
October 20, 2026
A Loan Estimate is a standard three-page form that a lender must give you within three business days after you apply for most mortgages. It shows the estimated interest rate, monthly payment, closing costs and other key loan terms in the same layout every lender uses, which makes it the easiest way to compare offers side by side. The Consumer Financial Protection Bureau (CFPB) created it under the TILA-RESPA Integrated Disclosure rule, and it replaced the old Good Faith Estimate (GFE) and early Truth-in-Lending disclosure for most applications taken on or after October 3, 2015.
When you get one and what's on each page. A lender owes you a Loan Estimate once it has six pieces of information: your name, income, Social Security number, the property address, an estimate of the property's value and the loan amount you want. It can't require pay stubs or other documents first, and it can't charge you anything except a reasonable credit-report fee until you receive the Loan Estimate and say you intend to proceed. Page 1 shows Loan Terms (loan amount, interest rate, principal and interest, and whether any of these can increase, plus any prepayment penalty or balloon payment), Projected Payments, Costs at Closing, and at the top, whether your rate is locked and until when. Page 2 breaks closing costs into lettered sections. Section A is the lender's own origination charges, including points. Section B is services you can't shop for, like the appraisal. Section C is services you can shop for, often title and settlement. Sections E through H are taxes, prepaids, the initial escrow deposit and other costs, and Section J is the total, with any lender credits shown as a negative number. Page 3 has the Comparisons box (the In 5 Years totals, APR and Total Interest Percentage) and other considerations such as servicing transfer.
How to compare two Loan Estimates and what can change. Compare estimates from the same day for the same loan amount, loan type and term, with the same lock status. Start with Section A, because origination charges and points are what a lender controls most directly. Then check Section J for lender credits, which lower closing costs but usually come with a higher rate. Use the APR and the In 5 Years row on page 3 to see fees and interest together. Don't judge a lender on Sections E through H, since taxes, prepaids and escrow depend mostly on the property and closing date. Numbers can change only within limits called tolerances. The lender's own fees and services you can't shop for generally can't increase at closing without a valid changed circumstance. Recording fees and shoppable services picked from the lender's list can rise by no more than ten percent in total. Prepaids, escrow and services you choose on your own can change in good faith. If you lock later, the lender must send a revised Loan Estimate within three business days of the lock.
Common questions, answered briefly. Is a Loan Estimate an approval? No. It's an estimate based on what you told the lender, and approval comes after underwriting. Does it commit you to the lender? No. You can collect several and choose one, or none. How long is it good for? If you don't say you intend to proceed within ten business days, the lender is no longer bound by the estimated closing costs, and the rate is firm only if it's locked. Which loans don't use it? HELOCs, reverse mortgages and loans on mobile homes not attached to land use other disclosures. Will shopping hurt your credit? For most scoring models, mortgage inquiries in a short shopping window count as one. What if the Closing Disclosure doesn't match? Ask which changed circumstance caused the difference. If a zero-tolerance fee went up without a valid reason, the lender must refund the excess. You'll get the Closing Disclosure at least three business days before closing, and it uses the same section letters, so you can match the two line by line.
A Loan Estimate is the three-page, standardized summary of a mortgage offer that you should receive within three business days of applying. Focus on page 1 for terms and lock status, Section A and Section J on page 2 for lender-controlled costs and credits, and the Comparisons box on page 3. Compare same-day estimates for the same loan, and use the tolerance rules to question any increases at closing. Source: CFPB Loan Estimate explainer and 12 CFR 1026.19(e) and 1026.37. General education only. LoFi Rate is an independent matching service, not a lender.