What is Loan Estimate?
A Loan Estimate is a standardized three-page form a lender must provide within three business days of a mortgage application, summarizing the rate, monthly payment, and estimated closing costs. It is designed so buyers can compare offers from different lenders apples-to-apples. It is an estimate, not the final figures.
Example: A buyer requests Loan Estimates from three lenders and lines up the forms side by side to compare rates and total closing costs.