Definition
The Loan Estimate is a standardized form your lender must provide within 3 business days of application. It shows estimated loan terms, monthly payment, closing costs, and APR. It allows you to compare loan offers from different lenders accurately.
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The Loan Estimate is a standardized form showing interest rate, APR, estimated closing costs, and monthly PITI. It allows borrowers to compare loan offers from different lenders. Many costs may vary at closing, but some (like origination fee) are locked in.
Pro Tip
Request loan estimates from at least 3 lenders and compare them side-by-side to ensure you get competitive rates and fees.
Example
The Loan Estimate shows a 6% interest rate, estimated closing costs of $7,500, monthly PITI of $1,900, and APR of 6.18%.