Published October 20, 2026
A Loan Estimate is a three-page form that a lender must give you within three business days of receiving your application, and it is not an approval. The CFPB explains that it shows the estimated interest rate, monthly payment and total closing costs for the loan you asked about, and that every lender uses the same standard form. That sameness is the point: you can lay three of them side by side and see which loan costs less. This guide walks through the form page by page, using CFPB guidance, for buyers in the city of Richmond, Henrico County and Chesterfield County.
This is general information, not legal or financial advice. For your own loan, ask your lender to explain any line you do not understand, and talk to a Virginia real estate attorney about the contract.
Page 1: the loan and the monthly payment
Page 1 is where you confirm that the lender wrote down the loan you asked for. The CFPB’s Loan Estimate explainer lists the checks in order: your name spelled correctly, the loan term, purpose, product and type, the loan amount, and the monthly principal and interest. Then it asks three payment questions. Are there additional charges in the payment? Does the estimated total monthly payment match what you expected? And are there estimated taxes, insurance and assessments that are not collected in escrow, meaning you would pay them yourself?
Two details on page 1 deserve extra attention. The first is the rate lock. The CFPB says to check at the top of page 1 whether your rate is locked and until when, because an unlocked rate can change at any time. Our guide to rate locks on a Richmond mortgage explains how long to lock and what happens if you miss the date. The second is the loan type and its features: the explainer defines fixed and adjustable rates, a prepayment penalty, a balloon payment and mortgage insurance, so look for each of those words and ask what applies. If mortgage insurance shows up in your payment, our PMI and MIP guide covers when it can drop off.
Finally, check the estimated cash to close. The CFPB asks whether you have enough cash on hand for that figure. It is the number most likely to surprise a first-time buyer, because it adds your down payment to closing costs and prepaid items.
Page 2: closing costs, and which ones you can shop for
Page 2 itemizes closing costs, and the CFPB splits the review into three actions. Compare the origination charges to the Loan Estimates from other lenders. Compare the services you cannot shop for. And review the services you can shop for, then actually shop for them. The form separates those groups on purpose, because the lender controls the first, limits the second and lets you choose the provider for the third.
Page 2 also lists other costs, and two of them are local. The CFPB asks whether the homeowner’s insurance premium is accurate and whether the property taxes are accurate. Real estate tax depends on where the house sits, so check the figure against the locality’s rate. Our guide to real estate tax rates across the Richmond metro and the one on when real estate tax is due in Chesterfield, Henrico and Hanover give the context. For the insurance line, read how to read a homeowners insurance quote before you accept the estimate. Page 2 also shows whether the loan includes lender credits and how any points you pay work, so ask the lender to show both in dollars.
Page 3: comparisons and fine print
Page 3 is the page buyers skip. The CFPB points to three things on it. Check that the loan officer information is what you expected. Use the Comparisons section to compare Loan Estimates, which shows totals over time and lets you see how two offers differ. And read what a late payment would cost. The explainer also defines appraisal, assumption and loan servicer, three terms that matter later: the appraisal ties into your contract, an assumption says whether a future buyer could take over the loan, and the servicer is the company that will collect your payments.
The Comparisons section is most useful when the loans are the same kind. If one lender quotes a 30-year fixed loan and another quotes a 15-year, the totals are not comparable. Ask each lender for the same product, with the same down payment and the same lock period, so the form compares like with like.
Get the Richmond closing-timeline checklist
The Loan Estimate is the first of several documents. Request our Richmond closing-timeline checklist and see where the Loan Estimate, the rate lock, the Closing Disclosure and the closing date fall, so you know when to ask each question.
What can change after you get the estimate
A Loan Estimate is an estimate, but not an unlimited one. The CFPB’s page on whether final costs can increase says it is illegal for lenders to deliberately underestimate costs, but that some costs can change. Interest rate first: if it is not locked, it can change at any time, and even a locked rate can change if your application information changes or you do not close within the lock period.
Closing costs fall into three groups. Some can rise by any amount, including prepaid interest, property insurance premiums and initial escrow deposits, plus services you shopped for yourself outside the lender’s written list. Some cannot rise at all, including fees paid to the lender or broker for a required service and transfer taxes. Some can rise by up to 10 percent as a group, including recording fees and required services from providers on the lender’s written list. The CFPB adds that these limits fall away when there is a change in circumstances, such as choosing a different loan, an appraisal that comes in higher or lower than expected, a credit change or income the lender cannot document. In that case you will likely get a revised Loan Estimate. If costs rise past the limits with no change in circumstances, the CFPB says you are entitled to a refund of the excess.
How to shop with Loan Estimates, step by step
The CFPB’s guide to applying for a mortgage recommends requesting a Loan Estimate from three or more lenders. To get one, a lender needs only six pieces of information: your name, income, Social Security number, the address of the home, an estimate of its value and the loan amount you want. The lender then has three business days to send it. After you choose, tell that lender you want to proceed. The CFPB says that if you do not notify the lender within 10 business days of delivery or mailing, the lender may revise the estimate or close the application as incomplete.
Our own suggestion is to request all of the estimates on the same day, for the same loan type and lock period, and put them in one table with the cash to close, the monthly payment and the origination charges. If you do not have a lender yet, our preferred lenders page is a starting point, and the mortgage calculator lets you test a payment before you apply. After the contract, the Loan Estimate gives way to the Closing Disclosure, covered in our guide to the Closing Disclosure and the three-day rule, and to underwriting, covered in what happens after you go under contract.
Ask for the closing-timeline checklist
The same offer, restated: request our checklist and see when each mortgage document arrives. If you are ready to look at homes, start from current listings or read how we work with buyers.
Frequently asked questions
How soon does a lender have to send a Loan Estimate?
The CFPB says the lender must provide a Loan Estimate within three business days of receiving your application. To receive one, you need to submit only six items: your name, income, Social Security number, the property address, an estimate of the home’s value and the loan amount you want.
Does a Loan Estimate mean I am approved?
No. The CFPB says that when you receive a Loan Estimate, the lender has not yet approved or denied your application. It shows the terms the lender expects to offer if you move forward, and the lender will then ask for more financial information.
How many lenders should I request estimates from?
The CFPB recommends requesting a Loan Estimate from three or more lenders so you can compare your options. All lenders must use the same standard form, which makes side-by-side comparison easier.
How long do I have to tell a lender I want to proceed?
The CFPB says that if you do not notify the lender within 10 business days, the lender may revise the Loan Estimate or close your application as incomplete. The 10 days run from when the lender delivers the estimate or mails it, whichever is earlier.
Can my closing costs go up after I get a Loan Estimate?
Some can. The CFPB says certain costs can rise by any amount, some by up to 10 percent as a group, and some not at all, unless there is a change in circumstances such as a different loan, an appraisal that comes in higher or lower than expected, a credit change or income the lender cannot document.
Will I get a refund if costs rise too much?
The CFPB says that if costs rise more than the allowed limits and there was no change in circumstances, you are entitled to a refund of the amount above the limits. If there was a change in circumstances, you will likely receive a revised Loan Estimate instead.
Can my interest rate change after the Loan Estimate?
Yes if it is not locked. The CFPB says an unlocked rate can change at any time, and a locked rate can still change if your application information changes or you do not close within the rate-lock timeframe. Check the top of page 1 to see whether your rate is locked and until when.
Do I get a Loan Estimate for every kind of loan?
No. The CFPB says you will not receive a Loan Estimate or Closing Disclosure for a reverse mortgage, a home equity line of credit, certain manufactured housing loans not secured by real estate, or certain subordinate loans through homebuyer assistance programs. You receive Truth-in-Lending disclosures for those instead.
