Federal rules give every mortgage borrower the same two forms. Used well, they’re the easiest way to compare lenders and catch surprises before closing.
The Consumer Financial Protection Bureau designed two forms that every lender must use for most mortgages. They follow the same layout, so you can compare offers and check that nothing changed unexpectedly.
The Loan Estimate
You’ll receive it within three business days of applying. It’s three pages:
- Page 1: loan terms, projected payments and estimated cash to close. Look for whether the rate is fixed or adjustable and whether there’s a prepayment penalty or balloon payment.
- Page 2: closing cost details, split into services you can and can’t shop for.
- Page 3: comparisons, including the APR and the total interest percentage over the loan.
Collect Loan Estimates from several lenders on the same day, for the same loan type, so the comparison is fair.
The Closing Disclosure
You must receive it at least three business days before closing. It’s five pages and mirrors the Loan Estimate, with final numbers.
Check these first:
- Loan amount, rate and monthly payment against your Loan Estimate.
- Cash to close, and the “Calculating Cash to Close” table that explains changes.
- Your name, the property address and the loan type.
Some fees can’t increase at all, some can rise by up to 10% in total, and others can change. If a number jumped, ask why before closing.
Wire fraud warning. Criminals send fake emails that appear to come from title companies or agents with new wiring instructions. Before sending money, call your settlement agent using a phone number you’ve verified independently.
Changes that restart the clock
If the APR increases beyond a set tolerance, the loan product changes or a prepayment penalty is added, you get a new Closing Disclosure and a new three-business-day waiting period.
The fees on these forms are explained in APR, points and closing costs, and the payment breakdown in what’s inside a mortgage payment.
The short version
- Lenders must send a Loan Estimate within three business days of your application.
- You must receive the Closing Disclosure at least three business days before closing.
- Compare the two forms side by side and ask about any change.
Readers also ask
Can the closing date move if something changes?
Yes. Certain changes, such as a higher APR beyond allowed limits or a different loan product, require a new three-day review period.
Does a Loan Estimate commit me to the lender?
No. It’s free to request and doesn’t commit you to anything, so you can collect several.
Who prepares the Closing Disclosure?
The lender is responsible for it, though a settlement agent often prepares it.
This guide is general information about U.S. mortgages, not financial, tax or legal advice. Loan terms depend on the lender and on your credit, income and property, so confirm the details with your lender, and see consumerfinance.gov for official guidance.
