Preapproval and lenders
How to read a Loan Estimate, page by page
Every lender has to give you the same three-page Loan Estimate within three business days of your application. That standard format is what makes comparison possible. It is also packed with numbers. Here is what to read first and what to check on each page.
Reviewed November 2026 · Written for Buy Home Tips from the sources listed below
The Loan Estimate exists because mortgage costs used to be hard to compare. Every lender now uses the same form, and the CFPB says it must arrive within three business days of your application. The CFPB's interactive explainer walks through each line. This guide focuses on what to check and what to compare.
Page 1: the loan in brief
The top of page 1 shows who you are, the property, the loan type and term, and whether the rate is locked. Next to the rate lock box, check the date the estimated closing costs expire. If you do not tell the lender you want to proceed within the time federal rules allow, it can issue a new estimate.
Loan Terms gives the loan amount, interest rate and principal and interest payment. Next to each is a yes or no: can it increase after closing? It also tells you whether there is a prepayment penalty or a balloon payment. For most first-time buyers, you want "no" for both.
Projected Payments shows the monthly payment over time, including mortgage insurance and the estimated escrow for taxes and insurance. If mortgage insurance ends at some point, a later column shows the payment without it.
Costs at Closing gives estimated closing costs and estimated cash to close.
Page 2: the closing costs
Section A, origination charges. What the lender charges, including any points. This is the section to compare most closely, since it is entirely the lender's choice.
Section B, services you cannot shop for. Third-party services the lender picks, such as the appraisal and credit report.
Section C, services you can shop for. Items like title services and the survey. The lender gives you a list of providers, but you can choose others.
Sections E to G. Taxes and government fees, prepaids such as homeowners insurance and prepaid interest, and the initial escrow deposit. These depend on the property and the closing date more than on the lender.
Section J shows lender credits, as a negative number, and the total closing costs. The cash to close calculation at the bottom brings in the down payment, deposit and credits.
Page 3: comparisons and fine print
Comparisons shows how much you will have paid in principal, interest, mortgage insurance and loan costs over the first five years, and how much principal you will have paid off. It also shows the APR and the total interest percentage, or TIP, the interest you will pay over the life of the loan as a percentage of the loan amount.
Other considerations covers the appraisal, assumption, homeowners insurance, late payments, refinancing and servicing. The loan officer's and lender's NMLS IDs appear at the top.
What can change before closing
Federal rules limit increases. Fees the lender charges, and fees for services you cannot shop for, generally cannot increase. Some third-party fees, including recording fees and services you shop for from the lender's list, can increase only up to 10 percent as a group. Other items, such as prepaid interest, homeowners insurance and services you choose yourself from outside the list, can change. A lender can issue a revised estimate when there is a valid changed circumstance, such as a change in loan amount or a new rate lock.
The bottom line
Read page 1 for the shape of the loan, page 2 for the costs and page 3 for comparisons. Then compare section A and the rate between lenders on the same day, and ask about anything you do not understand before you choose.
Checking a Loan Estimate
- Confirm your name, the property and the loan amount on page 1.
- Note the rate, whether it is locked and the date the closing costs expire.
- Check the Loan Terms answers about increases, prepayment penalties and balloon payments.
- On page 2, read sections A, B and C, then the prepaids and escrow in F and G.
- On page 3, note the In 5 Years figure, the APR and the TIP.
- Write down your questions and ask the lender before you choose.
Questions buyers ask
When do I get a Loan Estimate?
The CFPB explains that the lender must give you a Loan Estimate within three business days of receiving your application.
Can the costs on a Loan Estimate change?
Some can. Federal rules hold lender fees to zero tolerance, cap some third-party fees as a group at a 10 percent increase, and let other costs, such as prepaid interest and insurance, change. A valid changed circumstance can allow a revised estimate.
How do I compare two Loan Estimates?
Use estimates for the same loan type, amount and term, received on the same day. Compare the rate, section A origination charges, the cash to close and the In 5 Years figure on page 3.
Does a Loan Estimate mean I am approved?
No. It is an estimate of terms and costs for the loan you applied for. Approval comes after underwriting.
Sources checked for this page
- CFPB: what is a Loan Estimate
- CFPB: Loan Estimate explainer
- CFPB: information needed for a Loan Estimate
- eCFR 12 CFR 1026.19: disclosure timing and tolerances
Checked November 2026. Programs and limits change; confirm with the source before you rely on a figure.