What Are These Documents?
📄 Loan Estimate (LE)
A standardized 3-page form you receive within 3 business days of applying for a mortgage.
- ✓ Shows estimated interest rate
- ✓ Shows estimated monthly payment
- ✓ Shows estimated closing costs
- ✓ Allows you to compare lenders
💡 Get LEs from 3+ lenders to compare!
📄 Closing Disclosure (CD)
A standardized 5-page form you receive at least 3 business days before closing.
- ✓ Shows final interest rate
- ✓ Shows final monthly payment
- ✓ Shows actual closing costs
- ✓ This is what you actually pay
⚠️ Compare to your LE before signing!
What Can (and Can't) Change
Not all costs can increase between your Loan Estimate and Closing Disclosure. Here's what's protected:
🔒 CANNOT Increase (0% Tolerance)
These fees cannot go up AT ALL if your rate is locked:
- ✓ Lender origination charges
- ✓ Points you agreed to pay
- ✓ Fees for services the lender selected
- ✓ Transfer taxes
If these increased, demand a correction or refund!
⚠️ Can Increase Up to 10% (10% Tolerance)
These fees can increase, but the TOTAL increase cannot exceed 10%:
- • Recording fees
- • Title services (if lender selected)
- • Title insurance (if lender selected)
- • Survey fees
- • Pest inspection
- • Other third-party services
If total increase exceeds 10%, you're owed a refund!
🔓 Can Change Unlimited (No Tolerance)
These can change by any amount:
- • Prepaid interest
- • Prepaid property taxes
- • Prepaid homeowners insurance
- • Initial escrow deposits
- • Owner's title insurance (if you chose)
- • Services you shopped for yourself
These are often based on actual amounts, so changes are expected.
📊 How to Compare: Step by Step
Step 1: Go to Page 3 of Your Closing Disclosure
Page 3 has a built-in comparison table showing your Loan Estimate costs vs. Closing Disclosure costs. This is your cheat sheet—use it!
Step 2: Check the "Did This Change?" Column
The CD shows whether costs changed and by how much. Look for any "YES" entries and verify they're allowed to change.
Step 3: Verify Key Numbers Match
| Check This | Where to Find (LE) | Where to Find (CD) |
|---|---|---|
| Interest Rate | Page 1, top right | Page 1, top right |
| Monthly Payment | Page 1, "Projected Payments" | Page 1, "Projected Payments" |
| Cash to Close | Page 1, bottom | Page 1, bottom |
| Loan Amount | Page 1, "Loan Terms" | Page 1, "Loan Terms" |
| Closing Costs | Page 2, Section D-I | Page 2, Section D-I |
Step 4: Question Any Surprises
If anything looks wrong, contact your lender IMMEDIATELY. You have 3 days before closing to resolve issues. Don't wait until you're at the closing table.
📋 Shopping for a Mortgage?
Get Loan Estimates from multiple lenders to compare. Same format makes comparison easy.
Compare Loan Estimates Now →🚨 Red Flags to Watch For
❌ Lender fees increased (and rate is locked)
This is NOT allowed. Demand a correction.
❌ Interest rate changed (without your consent)
If you locked, the rate shouldn't change. If you floated, verify the new rate is market-accurate.
❌ New fees appeared that weren't on LE
Ask for explanation. Some may be legitimate (like actual property taxes), others may be junk fees.
❌ Cash to close jumped significantly
Compare line by line to see what changed. Some increases are normal, large jumps need explanation.
Frequently Asked Questions
What's the difference between Loan Estimate and Closing Disclosure?
The LE is given within 3 days of applying and shows estimated costs. The CD is given 3 days before closing and shows final costs. Compare them to catch overcharges.
What if my Closing Disclosure is different from my Loan Estimate?
Some changes are allowed, some aren't. Check page 3 of your CD for the comparison. If protected fees increased, demand a correction or refund.
How long do I have to review the Closing Disclosure?
You must receive it at least 3 business days before closing. Use this time to compare, ask questions, and request corrections. Don't wait until closing.
Can I delay closing if I find errors?
Yes. If there are significant errors, you can request corrections. Certain changes (like APR increase >0.125%) require a new 3-day waiting period.
🏠 Get Multiple Loan Estimates to Compare
The best way to ensure fair pricing is to compare Loan Estimates from multiple lenders.
Get Pre-Approved & Compare Lenders →Related Guides
David Rodriguez
Senior Mortgage Document Specialist • 10+ Years Experience
David has reviewed thousands of Loan Estimates and Closing Disclosures, helping buyers catch errors and save money.