A Loan Estimate is a standard 3-page form every lender must use, so you can compare offers side by side. Page 1 shows the loan terms and estimated cash to close, page 2 breaks down the closing costs, and page 3 gives comparison figures. Ask two questions: what am I paying, and which numbers can still change?
The short answer: a Loan Estimate is a standard 3-page form that every lender has to use, so you can line up offers side by side. Page 1 shows the loan terms and your estimated cash to close. Page 2 breaks down the closing costs. Page 3 gives you comparison figures and other things to know. Read it with two questions in mind: what am I paying, and which of these numbers can still change?
Here's how I walk buyers through it, section by section, plus what's different about a Colorado Springs closing.
When do I get a Loan Estimate, and does it mean I'm approved?
Once you've applied, the lender must provide your Loan Estimate within 3 business days (CFPB: What is a Loan Estimate?). Under federal rules, you've "applied" once the lender has 6 pieces of information: your name, your income, your Social Security number to pull credit, the property address, an estimate of the property's value, and the loan amount you're asking for (Regulation Z §1026.2).
A Loan Estimate is not an approval. It's a disclosure of what a specific loan would look like if it closes. It also protects you: apart from a credit report fee, no one can charge you for things like an appraisal or underwriting until you've received the Loan Estimate and told the lender you intend to proceed (Regulation Z §1026.19).
If you're house-hunting without an address yet, see pre-qualified vs pre-approved vs underwritten for what comes before this step.
What's on page 1?
Page 1 is the summary. Start at the top and check the boring stuff first: your name, the property address, and the loan program and type. Small errors here cause big headaches later, and the CFPB recommends asking the lender to correct anything that's inaccurate (CFPB: Loan Estimate explainer).
Then look at these parts:
- Rate lock. The form says whether your interest rate is locked. If it isn't, the rate, points, and lender credits can change. It also shows the date and time your estimated closing costs expire (Regulation Z §1026.37). A lock means the rate won't change between the lock and closing, as long as you close within the lock period and nothing in your application changes (CFPB: What's a rate lock?).
- Loan Terms. Each line has a
Can this amount increase after closing?
column. If the interest rate line says "YES," you have an adjustable rate (CFPB: Loan Estimate explainer). Also look for a prepayment penalty or balloon payment. Ask me about any "YES" you don't understand. - Projected Payments. This shows principal and interest, any mortgage insurance, and the estimated escrow for taxes and insurance. It also lists which property costs are escrowed and which ones you'd pay on your own.
- Costs at Closing. Your estimated closing costs and estimated cash to close. For how the down payment, deposits, and credits fit together, see my cash-to-close guide.
What's on page 2, and which costs can I shop for?
Page 2 is where the closing costs live. The left side is Loan Costs:
- A. Origination Charges. What the lender charges to make the loan, such as origination, processing, or underwriting fees, plus any points. When you compare offers, the CFPB says to be sure to compare these charges (CFPB: Loan Estimate explainer).
- B. Services You Cannot Shop For. Third-party services the lender requires and picks, like the appraisal and credit report. Compare the total of this section across offers.
- C. Services You Can Shop For. Required services, like title and settlement work, where you can choose your own provider. The lender gives you a list, and the CFPB encourages you to shop these (CFPB: Loan Estimate explainer).
The right side is Other Costs:
- E. Taxes and Other Government Fees. Recording fees and any transfer taxes.
- F. Prepaids. Your first homeowners insurance premium, prepaid interest, and sometimes property taxes.
- G. Initial Escrow Payment at Closing. The cushion that starts your escrow account.
- H. Other. Items like an owner's title policy or HOA charges, depending on the contract.
Section J totals everything and subtracts any lender credits. Below that, "Calculating Cash to Close" brings in your down payment, deposit, and seller credits.
Which numbers can change before closing?
This is the part most buyers never hear about. Federal rules sort fees into three buckets (Regulation Z §1026.19):
- Generally can't go up. The lender's own charges, transfer taxes, and services you aren't allowed to shop for.
- Can go up a little, as a group. Recording fees and shoppable services where you picked a provider from the lender's list. Together, these can't rise by more than 10 percent over the original total.
- Can change. Prepaid interest, homeowners insurance premiums, escrow amounts, and services you shopped for on your own from a provider that isn't on the lender's list.
There are fair exceptions. The lender can issue a revised Loan Estimate for a changed circumstance
, such as new information about the property or your application, and when you lock your rate, a revised Loan Estimate must follow within 3 business days (Regulation Z §1026.19). If you wait too long to say you want to proceed, the original estimates can also be revised.
The final check comes later. Your lender must give you a Closing Disclosure at least 3 business days before you close (CFPB: What is a Closing Disclosure?). Lay it next to your Loan Estimate and compare them line by line.
What's on page 3?
Page 3 has the Comparisons table: what you'd pay over the first 5 years, the Annual Percentage Rate (APR), and the Total Interest Percentage. The CFPB suggests using this section to compare Loan Estimates from different lenders (CFPB: Loan Estimate explainer). Just make sure the offers are built on the same loan program, amount, and lock period, or the comparison isn't apples to apples. I go deeper on that in how mortgage rates are quoted.
Page 3 also covers late-payment terms and whether the lender plans to service your loan. If there's a signature line, signing it only confirms you received the form. You don't have to accept the loan because you signed it (Regulation Z §1026.37).
Colorado Springs specifics: what to look for on a local Loan Estimate
Property taxes. In Colorado, property taxes are collected in arrears, and El Paso County's first-half payment is due at the end of February (El Paso County Treasurer: Important dates). That timing affects how taxes are prorated with the seller and how much goes into your starting escrow. If you're buying in a newer neighborhood, ask whether a special district adds to the tax bill.
Homeowners insurance. Insurers look at hail and wildfire exposure along the Front Range, so quotes can differ from one policy to the next. The estimate on your Loan Estimate is a placeholder, and insurance is one of the costs that can change. Get real quotes early, because the premium flows into both Section F and your monthly escrow.
Title and the purchase contract. Who pays for the owner's title policy and certain closing fees is set by the purchase contract, so your agent's negotiation can change what lands in Sections C and H. Your agent can walk you through the Colorado contract terms.
Military moves. For Fort Carson, Peterson, Schriever, and Academy families on a tight report date, the three-business-day timelines matter. Build them into your plan so the Closing Disclosure doesn't hold up a move-in. VA buyers can learn more on my VA loans in Colorado Springs page.
A worked example (no numbers needed)
Two Loan Estimates arrive for the same Powers-area townhome.
Offer one shows lower origination charges, but the rate isn't locked and the estimate expires in a few days. Offer two has higher origination charges, but it includes a lender credit and a lock that runs past the closing date.
The right move isn't to grab the smaller Section A. Line up page 1 (lock status and any "YES" answers), page 2 (Sections A, B, and the J total), and page 3 (what you'd pay over the first 5 years). Then ask what could still change on each one. That's how you compare the whole offer, not just one line.
Frequently asked questions
Is a Loan Estimate the same as a pre-approval?
No. A pre-approval letter says how much a lender is generally willing to lend. A Loan Estimate shows the estimated terms and costs of a specific loan (CFPB: Loan Estimate explainer).
Do I have to accept the loan after I get a Loan Estimate?
No. You choose whether to tell the lender you intend to proceed. Most fees, other than a credit report fee, can't be charged until you do (Regulation Z §1026.19).
Can I get Loan Estimates from more than one lender?
Yes, and the CFPB encourages it (CFPB: Loan Estimate explainer). As a broker, I can compare options from several wholesale lenders for you.
Why did I get a revised Loan Estimate?
Common reasons include locking your rate, a change to the loan amount or program, or new information about the property. Ask what changed and why (Regulation Z §1026.19).
What's the difference between the Loan Estimate and the Closing Disclosure?
The Loan Estimate comes early. The Closing Disclosure shows the final terms and must arrive at least 3 business days before closing (CFPB: What is a Closing Disclosure?).
Will you go over my Loan Estimate with me?
Yes. Send it over, even if it came from another lender, and I'll walk you through it line by line.
Want a second set of eyes on your Loan Estimate?
I'll go through every section with you, point out what can still change, and show you what to ask before you move forward.
Start a secure application. Applying doesn't commit you to a loan. You can also call or text (660) 229-0219 or email csimmons@edgehomefinance.com.
Related guides: Down payment vs cash to close · How mortgage rates are quoted · How a mortgage broker works · Refinance or HELOC? · First-time homebuyer in Colorado Springs
Sources (official, checked November 2, 2026): CFPB: Loan Estimate explainer · CFPB: What is a Loan Estimate? · CFPB: What is a Closing Disclosure? · CFPB: What's a rate lock? · Regulation Z §1026.2 · Regulation Z §1026.19 · Regulation Z §1026.37 · El Paso County Treasurer: Important dates. Rules change; confirm current guidance before you rely on it.
Cole Simmons, Sr. Loan Officer · NMLS #1127011 · Edge Home Finance, LLC · Company NMLS #891464 · (660) 229-0219 · Equal Housing Opportunity. Licensed in AZ, CA, CO, FL, GA, IL, KS, MO, NC, OK, OR, PA, TN, TX. Verify licensing at NMLS Consumer Access. All loans are subject to credit, property, and underwriting approval. Program availability and requirements vary by state and lender and may change. Not all applicants qualify. A Loan Estimate is not a commitment to lend. Cole Simmons and Edge Home Finance are not affiliated with or endorsed by the CFPB, the Department of Veterans Affairs, HUD/FHA, Fannie Mae, Freddie Mac, or any military installation. This article is general information, not legal or tax advice.