Also written as:
LE
A standardized 3-page form your lender must provide within 3 business days of applying. Shows projected interest rate, monthly payment, closing costs, and key loan terms.
The Loan Estimate is one of the most important documents in your mortgage process. By federal law (the TILA-RESPA Integrated Disclosure rule, often called TRID), the lender must provide it within 3 business days of you submitting a complete application.
It's standardized — every lender uses the same 3-page form, which means you can directly compare offers from multiple lenders side by side. Key sections to look at: Page 1 shows your loan amount, interest rate, monthly payment, and whether the rate is locked. Page 2 shows itemized closing costs and "cash to close." Page 3 shows comparisons (5-year total cost, APR, total interest percentage).
The Loan Estimate is binding in a specific way — some line items can't go up at closing ("zero-tolerance" items), and others can change only within strict limits. It's your protection against bait-and-switch pricing.
Example
You apply with three lenders. Benchmark sends a Loan Estimate showing 6.5% rate, $2,022 P&I, $9,800 in closing costs, 6.72% APR. Lender B shows 6.625%, $2,047 P&I, $11,200 closing, 6.79% APR. Side by side, Benchmark wins on rate AND cost.
Also known as
LE, loan estimate, TRID Loan Estimate
Source:
CFPB