Every lender eventually has to send you the same form.
It is called the Loan Estimate. Same three pages, same sections, same order, no matter who you talk to. The government built it that way on purpose, so you could lay two of them next to each other and actually compare. That is the part almost nobody uses.
Here’s the part nobody tells you. Several sections on this form are not the lender’s price at all. They are assumptions: taxes, insurance, title, escrow. An expensive lender can lowball those numbers to make their bottom line look smaller, without changing your rate or a single real fee. The loan does not get cheaper. The form just gets better at hiding that it did not. For our clients, we catch this on video: line by line through your actual Loan Estimate when it lands, then again at closing, holding the real Closing Disclosure next to the original so you see exactly what moved, and why.
Not everyone reading this is a client yet, and that is fine. Nobody should have to hire someone just to see through a trick that is sitting in plain sight on a government form. So here it is, decoded the same way we would walk you through your own. Page 1 for the loan itself, then page 2 for the closing costs.
Select a section. See what it really tells you.
Click the form or the explanation. The matching section stays highlighted on both sides.
The rate used to calculate your interest. It drives your monthly principal and interest, and over thirty years it is the single biggest lever on what the loan costs you.
Go deeperWhat buying down your rate with points really costsCash to close is not the price. A + B + lender credits, after matching Page 1 terms, is where lender comparison starts.
You just learned to read the form. Now read yours.
Keep Lenders Honest takes your actual Loan Estimate, benchmarks the rate, fees, and APR against today’s wholesale market, and flags the line items that should not be there. The methodology is published. And no, you do not have to share it with us.
Loan Estimate questions, answered
What is a Loan Estimate?
A Loan Estimate is a standardized three-page form every mortgage lender is required by law to send you within three business days of your application. It lays out your estimated interest rate, monthly payment, closing costs, and cash to close. Because every lender uses the exact same form in the same order, you can place two Loan Estimates side by side and compare them line for line.
How do you read a Loan Estimate?
Start on Page 1, which describes the loan itself: the loan amount, interest rate, monthly principal and interest, and whether any of those can increase. Page 2 breaks down the closing costs into lettered sections A through J, plus the cash to close. The key skill is separating the costs a lender actually controls (sections A and B, and the rate behind any lender credit) from the assumptions it only estimates, like taxes, insurance, title, and escrow.
What does an example Loan Estimate look like?
The interactive sample on this page is a full, anonymized Loan Estimate for a $551,000 loan at 6.75% on a 30-year fixed mortgage. You can click any section on Pages 1 and 2 to see what that term or cost really means, which ones a lender can change, and which ones are fixed assumptions. It is built to mirror the real government form so you recognize your own when it arrives.
How do I compare Loan Estimates from two lenders?
First make the loans match on Page 1: same loan type, term, amount, rate, and points. Then normalize the grey assumption sections on Page 2 so taxes, insurance, title, and escrow are the same on both. Only then compare the lender-controlled pieces: sections A and B plus the rate behind any lender credit. The cash to close is not the price, because a lender can lowball its assumptions to shrink that number without lowering your rate or a single real fee.
How long is a Loan Estimate good for?
The interest rate on a Loan Estimate is typically only guaranteed until the date and time shown in the rate-lock box, which is often a matter of days. The other terms and estimated costs must be honored for at least 10 business days, giving you time to compare offers. After that window, or once the rate lock expires, the lender can reissue the estimate with updated numbers.
Is a Loan Estimate the same as a Closing Disclosure?
No. The Loan Estimate is what you receive early, right after you apply, so you can shop and compare. The Closing Disclosure is the near-final version you receive at least three business days before closing. Reading them side by side is how you catch what moved between application and closing, and why.
Educational illustration. Not a Loan Estimate or a commitment to lend. The figures are based on an anonymized sample. Actual costs depend on your transaction, loan terms, and service providers. Deliberately underestimating Loan Estimate costs is prohibited, but legitimate estimates can still differ when their assumptions differ. That is what this page is here to help you see.