Short answer: A Loan Estimate is a standard three-page form that shows the estimated rate, payment, closing costs, and cash to close for a mortgage you applied for. The lender must give it to you within 3 business days after receiving your application (the six key pieces of application information). Some fees on your later Closing Disclosure cannot rise at all without a change in circumstances, some can rise by up to 10% in total, and some can rise by any amount — and if costs exceed the allowed limits without a change in circumstances, you are entitled to a refund of the excess (CFPB Ask CFPB #1995 · CFPB: Review Loan Estimates · CFPB Ask CFPB #172).
Best move when you have a Loan Estimate
If you just got a Loan Estimate: walk the checklist below, mark anything that looks wrong, then get two more Loan Estimates for the same loan type on the same day — compare origination charges, rate lock, APR/TIP, and cash to close. Ask about prepayment penalties or balloon payments if either flag says YES. Before closing, line up your Closing Disclosure with this estimate.
The math:
Lender must provide a Loan Estimate within 3 business days of your application (CFPB)
Zero tolerance (no increase without change in circumstance): lender/broker/affiliate required fees; non-shoppable required services (non-affiliate); transfer taxes
10% cumulative tolerance: recording fees; shoppable required services from the lender's written list (affiliate → zero)
Unlimited: prepaid interest, property insurance, initial escrow; off-list shopped services; services lender does not require
A best fit for the situation described, not financial advice or a buy/sell recommendation. Partner links never change a pick.
Your roadmap
Confirm you received the form within 3 business days of giving the lender your application info — call if it is late.
Run the checklist on this page (name, loan terms, rate lock, risky features, payments, costs, APR/TIP, NMLS).
Compare origination charges and cannot-shop services across at least three Loan Estimates for the same product.
Shop the services you can shop for using the lender's written list (or ask before picking off-list — that changes tolerance rules).
Check fee-tolerance categories below so you know which Closing Disclosure increases are allowed.
Before closing, compare your Closing Disclosure to this estimate (CFPB Closing Disclosure). Ask about any jump over the caps.
Loan Estimate checklist
Check each box when something looks wrong or you need to ask the lender. Based on the CFPB Loan Estimate Explainer actions — not a loan approval tool.
Page 1 — Loan terms
Ask the lender to fix typos now — even small misspellings can cause problems later.
Must match what you discussed (e.g. 30-year purchase, fixed-rate, conventional / FHA / VA).
On a purchase, loan amount + down payment should equal the sale price (ask why if not).
Check page 1: locked or not, and until when. An unlocked rate can change anytime.
If the form says YES under Can this amount increase after closing? for interest rate, it is adjustable.
CFPB calls this a risky feature — ask about options without a prepayment penalty.
CFPB calls this a risky feature — a large final lump sum. Ask about alternatives.
Page 1 — Payments
Usually the core of your payment; total monthly payment is typically higher with taxes/insurance.
Includes mortgage insurance and escrow if applicable. Confirm you can afford this each month.
Non-escrowed items you pay yourself — often in large lump sums. Know how often.
Page 1 — Costs
Upfront settlement costs to get the loan and transfer the property.
What you bring to closing (often cashier's check or wire), after deposits and credits.
Page 2 — Closing cost details
Compare total Section A origination charges across Loan Estimates — itemization can differ.
Lender-required providers you cannot shop — compare the section total across lenders.
Use the lender's written list, or shop off-list (ask first). Shopping can change tolerance rules.
Often set by government or your insurer, not the lender — check accuracy.
A credit can mean a higher rate. Ask about a lower-rate option without the credit.
Upfront fee for a lower rate. Ask about a no-points option and how rate/cost change.
Page 3 — Comparisons
Use Comparisons to line up same-type loans from different lenders.
Page 3 — Other disclosures
Know the fee if a payment is late — still pay on time every month.
Page 3 — Contact info
Confirm the officer you are working with is listed; look them up in NMLS Consumer Access.
Optional: cash-to-close arithmetic
Type numbers from your Loan Estimate. Formula: down payment + closing costs − deposit − seller credits − lender credits. We only add and subtract what you type — no rates or fees invented.
A Loan Estimate is a standard three-page form your lender must give you after you apply for most mortgages. It shows the estimated interest rate, monthly payment, closing costs, cash to close, and whether the loan has features such as a prepayment penalty or balloon payment. Getting a Loan Estimate does not mean your loan is approved or denied.
The lender must provide a Loan Estimate within three business days of receiving your application (the six key pieces of application information). Allow a few extra days if it comes by mail.
You generally will not get a Loan Estimate for:
Reverse mortgages
Home equity lines of credit (HELOCs)
Manufactured housing or mobile home loans not secured by real estate
Certain subordinate loans through homebuyer assistance programs
Some closing costs on your Closing Disclosure can rise from the Loan Estimate; others cannot, unless there is a change in circumstances. It is illegal for lenders to deliberately underestimate costs on your Loan Estimate.
Cannot increase (zero tolerance)
Unless there is a change in circumstances, these cannot increase at all:
Fees paid to the lender, mortgage broker, or an affiliate of either for a required service
Fees for required services you could not shop for separately, when the provider is not an affiliate of the lender or broker
Transfer taxes
Can increase up to 10% (cumulative)
Without a change in circumstances, the total of these cannot rise by more than 10%:
Recording fees
Fees for required services when you pick a provider from the lender's written list (if that provider is an affiliate of the lender, the cost cannot change at all — zero tolerance)
Can increase by any amount
These are generally not controlled by the lender's tolerance caps:
Prepaid interest, property insurance premiums, or initial escrow account deposits
Fees for required services you shopped for separately if you choose a provider not on the lender's written list
Fees for third-party services the lender does not require
You decided to get a different kind of loan or change the amount of your down payment
The appraisal came in higher or lower than expected
You took out a new loan or missed a payment and that changed your credit
Your lender could not document your overtime, bonus, or other income
Refund: If costs increase more than the allowed limits and there was no change in circumstances, you are entitled to a refund of the amount above the allowable limits. A change in circumstances usually means a revised Loan Estimate.
Category
What can change
Zero tolerance
Cannot increase without a change in circumstances
10% cumulative
Total of covered fees cannot rise more than 10% without a change in circumstances
Unlimited
Can increase by any amount (prepaid interest, insurance, initial escrow, off-list shopped services, non-required services)
Limits of this page
Not mortgage, legal, or lending advice — republished CFPB consumer facts with dates only.
We do not invent fees, rates, APR, TIP, or closing-cost numbers; type your own figures for the cash-to-close arithmetic.
Tolerance categories depend on how services were shopped and affiliate relationships — your Loan Estimate / Closing Disclosure and lender records control.
Reverse mortgages, HELOCs, and some other products use different disclosures (not the standard Loan Estimate).
Rate locks, underwriting, and final fees can still change under the rules CFPB describes — confirm with your lender and Closing Disclosure.
Not mortgage or lending advice. We republish CFPB consumer pages with dates and do arithmetic on numbers you type. Your lender, Loan Estimate, and Closing Disclosure control the actual terms and fees.
A Loan Estimate is a standard three-page form that shows the estimated interest rate, monthly payment, closing costs, and cash to close for a mortgage you applied for. Receiving one does not mean the lender has approved or denied your loan.
How soon must I get a Loan Estimate?
The lender must provide a Loan Estimate within three business days of receiving your application (the six key pieces of application information). If you have not received one in that timeframe, call the lender and ask why.
Can closing costs go up from my Loan Estimate?
Some costs cannot increase at all without a change in circumstances (zero tolerance), some can rise by up to 10% in total, and some can rise by any amount. If costs exceed the allowed limits without a change in circumstances, you are entitled to a refund of the excess (CFPB Ask CFPB #172).
What is a change in circumstances?
CFPB examples include choosing a different loan or down payment, an appraisal that differs from expectations, a new loan or missed payment that changes your credit, or income the lender could not document. Those situations often allow a revised Loan Estimate.
How do I compare Loan Estimates?
Request estimates for the same kind of loan from different lenders on the same day. Compare origination charges, services you cannot shop for, APR, TIP, rate lock, and cash to close. Use the CFPB Loan Estimate Explainer and this checklist.
Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.