Loan Estimate

A loan estimate is a three-page form that presents home loan information in an easy-to-read format, complete with explanations. This standardization not only makes the information easy to digest; it also makes it easy to determine what the costs are. You’ll get a loan estimate within three business days of applying for a mortgage unless you don’t meet the lender’s basic qualifications and your application is rejected. The only fee you may have to pay to get a loan estimate is a credit report fee.

Page 1- Begins with Basic Information:

  • Lender’s name and address
  • Applicant’s name and address
  • Property address and sale price
  • Loan term, type, and purpose
  • Loan ID number
  • Loan estimate date
  • Rate lock information

Page 2—Itemized Mortgage Costs

The loan estimate’s second page itemizes the loan’s closing costs and shows how much cash you’ll need to finalize the loan.

  1. Origination Charges
  2. Services You Cannot Shop For
  3. Services You Can Shop For
  4. Taxes and Other Government Fees
  5. Prepaids
  6. Initial Escrow Payment at Closing
  7. Other

Page 3—Comparisons and More Loan Characteristics

The top of Page 3 says who your loan officer is, what their license number is, and how to contact them (you might also be interested to know how loan officers are compensated).


  • Total principal, interest, mortgage insurance, and loan costs you will have paid after having the loan for five years (remember, loan costs are on Page 2)
  • Total principal you will have paid off after five years, or how much equity you will have in your home, excluding any increase or decrease in its market value.
  • Annual percentage rate, a figure that accounts for the loan’s interest rate and fees combined.
  • Total interest percentage, a figure that shows how much interest you will pay over the entire loan term as a percentage of how much you’re borrowing.

Other considerations:

This section tells you six more things about the loan for which you’ve applied:

  • Appraisal
  • Assumption
  • Homeowner’s Insurance
  • Late Payment
  • Refinance
  • Servicing
Privacy Policy
© 2024 Buckingham Mortgage™