The one thing to know before anything else

Within three business days of a mortgage application, every lender in America must send you the same standardized three-page form: the Loan Estimate. Same layout, same section letters, same math, no matter whose logo is on top. That's not bureaucracy — that's the only reason you can put two offers side by side and compare them line by line. Use it.

Page 1 — the deal

The big numbers are here: loan amount, interest rate, monthly principal & interest. But the two small answers matter more than the big numbers:

  • "Can this rate rise?" and "Rate lock: YES / NO." If the rate isn't locked, page 1 is a weather forecast, not a promise. Ask when it locks and for how long.
  • Prepayment penalty. Should say NO. If it doesn't, ask why.

Below that, the Projected Payments table adds estimated taxes, insurance, and any mortgage insurance to your payment. That total — not the advertised principal & interest — is what actually leaves your checking account each month.

Page 2 — the fees, A through J

Every charge lives in a lettered box, and the letters tell you what's negotiable:

  • Section A — Origination charges. The lender's own price for making the loan. This is the number to compare between lenders, because it's the one they control.
  • Sections B and C — Required services. Appraisal, credit report, title work. B you can't shop; C you can. In Florida the title insurance premium is set by a state formula, but the agent's closing fees around it vary — shopping C is real money.
  • Sections E, F, G — Taxes, prepaids, and escrow. Government recording taxes, prepaid interest and insurance, and the escrow cushion. These are mostly identical no matter which lender you pick — don't give anyone credit for "cheaper" taxes.
  • Section J — Total closing costs, and the Cash to Close box: the check you actually write.

The three numbers to check first, in order: Is the rate locked? → Section A total → Estimated Cash to Close. Everything else is supporting detail.

Page 3 — the tiebreakers

Three comparison tools live here: "In 5 Years" (total dollars paid after five years — the cleanest way to compare two offers), APR (the rate with most fees baked in), and TIP (total interest as a percentage of the loan). When two offers look close, the five-year number usually settles it.

Comparing two Loan Estimates fairly

Get them on the same day (rates move daily), with the same lock period, then compare Section A minus any lender credits, and the five-year cost. A lower rate with a fat Section A is often the worse deal — that's the oldest trick in the book.

Our cash-to-close worksheet mirrors the Loan Estimate's layout on purpose, so the numbers we quote line up with the form you'll eventually sign. And if another lender sends you a Loan Estimate, send it over — we'll read it with you, line by line, even if you close with them.