A loan estimate is a standardized document provided by a lender that outlines the key details of a potential mortgage loan. It gives borrowers a clear picture of the loan terms, including the estimated interest rate, monthly payments, and closing costs. This document, required by law, helps you compare loan offers from different lenders, ensuring transparency in the borrowing process. Typically, you’ll receive your loan estimate within three business days after submitting a mortgage application. Remember, it’s not a final approval, but a tool to help you make an informed decision about your financing options.

Full Story: Consumer Finance Protection Bureau (8/9/2024)