Loan Estimate (LE)
Direct definition
A three-page federally required disclosure summarizing a mortgage offer's terms and costs.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
The Loan Estimate is delivered within three business days of application. It uses a standardized format to compare offers apples-to-apples.
Why it matters
It's the primary shopping tool for comparing lender offers on rate, fees, and cash to close.
Where you may see it
- Loan Estimate
- Disclosure forms
A real-world example
You request LEs from three lenders and compare the total cash to close and estimated payment side by side.
Educational and illustrative only
A common misunderstanding
A Loan Estimate is not a guaranteed final offer — actual terms and costs can change before closing, subject to certain tolerance rules.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026