Closing ProcessHomebuying Glossary

Loan Estimate

Also known as LE

A standardized three-page form lenders provide within three days of your loan application, estimating costs and terms.

In plain English

The Loan Estimate outlines your projected interest rate, monthly payment, and closing costs shortly after you apply, letting you compare offers from different lenders using the same standardized format.

Why it matters

Because every lender's Loan Estimate follows the same format, it's the easiest way to do a true apples-to-apples comparison when shopping for a mortgage.

Where you'll run into it

Guides and tools on TheBuyingPath that cover loan estimate in context.

Related terms

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