- The lender must provide a Loan Estimate within three business days of receiving your application.
- It is not an approval. The CFPB says the lender has not yet approved or denied your application.
- All lenders use the same standard form, which makes offers easier to compare. The CFPB recommends requesting several from different lenders.
- Compare Loan Estimates for the same kind of loan, starting with origination charges and the services you cannot shop for.
What a Loan Estimate is
A Loan Estimate is a three-page form that summarizes the key terms of a mortgage you have asked for, such as the estimated interest rate, the monthly payment and the total closing costs. The CFPB says the lender must provide it within three business days of receiving your application, and that every lender must use the same standard form.
Getting one does not mean you are approved. In the CFPB’s words, the lender has not yet approved or denied your application. If you decide to continue, the lender will ask for more financial information.
What each page covers
| Page | What it shows |
|---|---|
| Page 1 | Loan terms and monthly payments: principal and interest, the estimated total monthly payment, escrow, estimated closing costs and cash to close. It also covers the rate lock, whether the rate is fixed or adjustable, prepayment penalties, balloon payments and mortgage insurance. |
| Page 2 | Closing costs: origination charges, services you can shop for and services you cannot, homeowner’s insurance, property taxes, lender credits, the breakdown of estimated cash to close and points. |
| Page 3 | The loan officer’s information, the Comparisons section (APR and Total Interest Percentage), the cost of a late payment and definitions of appraisal, assumption and loan servicer. |
Loans other than mortgages do not use this form; for those, see personal loan fees. Homeowner’s insurance appears on page 2. For how premiums and deductibles work, see how insurance works.
What to compare between lenders
The CFPB advises comparing origination charges and the services you cannot shop for across Loan Estimates, then comparing the Comparisons section and checking the loan officer’s information. It also says to compare Loan Estimates for the same kind of loan, and to request estimates from different lenders so you can choose the loan that is right for you.
| Item | Lender 1 | Lender 2 | Lender 3 |
|---|---|---|---|
| Loan type and term | |||
| Interest rate, and is it adjustable? | |||
| Estimated total monthly payment | |||
| Origination charges | |||
| Services you cannot shop for | |||
| Cash to close | |||
| APR and Total Interest Percentage |
Check it against what you were told
The CFPB says the Loan Estimate lets you check that the loan matches what you discussed with the lender. Look at the rate lock, whether the rate is adjustable, and any prepayment penalty or balloon payment listed on page 1. If a term is not what you expected, ask the loan officer about it before you go further.
Frequently asked questions
When must a lender send a Loan Estimate?
The CFPB says the lender must provide a Loan Estimate within three business days of receiving your application.
Does a Loan Estimate mean I am approved?
No. The CFPB says the lender has not yet approved or denied your loan application when it sends the estimate.
How many Loan Estimates should I get?
The CFPB does not set a number. It recommends requesting multiple Loan Estimates from different lenders so you can compare and choose.
What is on page 3 of a Loan Estimate?
Page 3 has the loan officer’s information, the Comparisons section with the APR and Total Interest Percentage, the cost of a late payment, and definitions of appraisal, assumption and loan servicer.
Which costs should I compare first?
The CFPB advises comparing origination charges and the services you cannot shop for, then the Comparisons section.
Sources
- CFPB: Loan estimate explainer (page last modified October 29, 2025)
- CFPB: What is a Loan Estimate? (last reviewed August 9, 2024)
Each source was opened and read on October 26, 2026. See how we verify.