What Actually Shows Up on a Loan Estimate (Full Walkthrough)
Most people get a Loan Estimate, skim the bottom line, and set it aside. That's a mistake. The Loan Estimate is a three-page document, and each page is telling you something different. Here's what's actually on it, and which numbers are allowed to move before you close.
Page 1: The basics
The top of page 1 covers the loan itself: amount, interest rate, and monthly principal and interest. Below that is a box showing whether the rate and payment can change, which matters most if you're comparing a fixed rate to an adjustable one
Page 2: Where the costs actually come from
This is the page most people skip, and it's the most useful one. It splits your closing costs into two sections.
Loan Costs covers origination charges, any discount points, and services you either can't shop for or that Quazel selected on your behalf. Other Costs covers taxes, government fees, prepaids like homeowner's insurance, and initial escrow deposits.
Reading this page line by line is the only way to actually understand what you're paying for and why.
Page 3: The comparison numbers
Page 3 has a few figures worth actually looking at instead of skipping past. Cash to Close is your real, final number. The Annual Percentage Rate (APR) reflects your interest rate plus most of the loan costs, expressed as a yearly rate, useful for comparing two loan offers apples to apples. Total Interest Percentage (TIP) shows the total interest you'd pay over the life of the loan as a percentage of your loan amount, which mortgage disclosure law requires but which few people actually understand at a glance.
Which numbers are allowed to change
This is the part almost nobody knows, and it's the reason your Closing Disclosure sometimes looks a little different from your Loan Estimate.
Federal rules (known as TRID) sort every fee on your Loan Estimate into one of three buckets:
Zero tolerance. These can't increase at all, full stop. Transfer taxes and fees paid to Quazel or an affiliate fall here.
10% cumulative tolerance. These can move, but only added together, and only up to 10% total. Recording fees and certain third-party services you picked from Quazel's provider list fall here. If the total goes up more than 10%, the difference gets credited back to you at closing.
No tolerance limit. Prepaid interest, homeowner's insurance premiums, and escrow deposits can shift with no cap, because these depend on real-world numbers (your actual insurance quote, the exact days of prepaid interest) that aren't fully known until closer to closing.
Knowing which bucket a number falls into is the difference between a normal, expected shift and a red flag worth asking your Loan Officer about directly.
Questions about your own Loan Estimate? Reach out before you sign anything you don't fully understand.
Expect to close one week early.
Frequently Asked Questions
What is the difference between a Loan Estimate and a Closing Disclosure? The Loan Estimate is an early, three-page snapshot of your loan terms and costs, sent within three days of application. The Closing Disclosure is the final version of those numbers, sent at least three days before closing, and it should closely match the Loan Estimate except for the costs allowed to shift.
Can my closing costs go up after I get a Loan Estimate? Some can, some can't. Zero-tolerance fees like transfer taxes can't increase at all. Fees in the 10% cumulative bucket can move, but only added together and only up to 10% total. Costs like prepaid interest and insurance premiums have no cap because they depend on real numbers that aren't final yet.
What is APR on a Loan Estimate? The Annual Percentage Rate reflects your interest rate plus most of your loan costs, expressed as a yearly rate. It's meant to give you one number for comparing two different loan offers apples to apples.
How many pages is a Loan Estimate, and which page matters most? Three pages. Page 1 covers the basics and bottom-line totals. Page 2 breaks down exactly where your closing costs come from, and it's the page most people skip even though it's the most useful.
