Check your Loan Estimate before you sign

What the checkup looks at

A Loan Estimate describes the terms and estimated costs of a mortgage. The checkup organizes those printed numbers and identifies questions, not which loan to choose. It reads the document or uses numbers entered by hand. An unreadable or missing answer stays unconfirmed; a fee worksheet is not treated as an official Loan Estimate.

Points are an upfront charge associated with the quoted rate. Lender credits reduce closing costs and may accompany a different rate. The checkup keeps both visible rather than treating a lower rate as the whole price. Rate-lock status and its expiry are separate from the date other estimated closing costs expire. Loan features include a prepayment penalty, balloon payment, and whether the interest rate or principal-and-interest payment can change.

Mortgage insurance is separate from principal and interest. PMI and FHA MIP can have different durations; a printed projected-payment period takes precedence over an estimate. Services that can be shopped for appear separately from those that cannot. APR incorporates certain financing costs under disclosure rules, while the interest rate determines scheduled interest. Neither number alone describes cash needed at closing.

The page-three “In 5 Years” figure describes scheduled payments and principal paid, not a promise about a future refinance. Escrow collects property costs for later payment and is not lender pricing. Math checks compare available printed totals with calculated amounts. Missing evidence is shown as not checked, not a successful match. Rounding or a special loan term may explain a difference, but the checkup does not invent a missing fee to force a match.

Loan Estimate sections A–H in plain English

A. Origination charges

This section lists charges for obtaining the loan, including discount points when present. Points are part of Section A, not an additional charge to add again. Individual charges and their total are kept separate so the same amount is not counted twice.

B. Services you cannot shop for

These are required services for which the lender chooses the provider, such as an appraisal or credit report. A worksheet may group them under a different heading. The checkup maps individual lines to their function rather than copying that worksheet heading’s subtotal.

C. Services you can shop for

These are required services for which the Loan Estimate permits choosing a provider. Title and settlement services commonly appear here. The estimate may use a particular provider’s price; the final amount depends on the service and provider used, rather than the loan’s interest rate.

D. Total loan costs

Section D adds A, B and C. It is the Loan Estimate’s loan-cost subtotal before lender credits. A fee worksheet may not print an equivalent D. In that case, the checkup calculates the mapped loan costs but leaves the printed-D check unverified.

E. Taxes and other government fees

Recording charges and transfer taxes appear here. These amounts affect cash to close but are not set by the lender as loan pricing. A fee may depend on the property’s location or transaction, so the printed amount remains distinct from lender charges.

F. Prepaids

Prepaid interest and insurance premiums pay for particular periods in advance. They differ from an escrow deposit. Interest can vary with the anticipated closing date. An upfront mortgage-insurance or funding fee is identified separately so it is not counted both as a prepaid and as an upfront fee.

G. Initial escrow payment at closing

This is money deposited for future property bills, such as taxes or insurance. It is still part of cash needed at closing. The deposit does not by itself establish which bills will be escrowed; the document’s individual escrow answers describe that arrangement.

H. Other

This section can contain transaction-specific costs, including certain optional items or owner’s title coverage. Its contents vary. Together, E through H form other closing costs; Section J combines them with loan costs and lender credits. Cash to close also accounts for down payment, deposits and other transaction adjustments.

Questions worth asking your lender

• Can you explain which charges are included in the points and origination total?
• Is this rate locked, and when do the lock and other estimated costs expire?
• Is there a prepayment penalty or balloon payment on this loan?
• Can the interest rate or principal-and-interest payment change, and when?
• How long does the mortgage insurance last, and which document shows that duration?
• Which services can I choose a provider for, and which property bills are escrowed?
• Can you explain any difference between the itemized fees, printed totals and cash to close?

Learn more

• Compare two or three Loan Estimates
• Closing costs explained
• Discount points and lender credits