Real Estate Finance

Loan Estimate (LE)

The early-stage TRID disclosure summarizing estimated loan terms and closing costs, delivered within 3 business days of application.


Definition

The Loan Estimate is a 3-page form lenders must provide within 3 business days of receiving a borrower's complete loan application. It standardizes the disclosure of loan terms, projected monthly payments, estimated closing costs, and cash needed to close. Borrowers can use the LE to comparison-shop across lenders. The LE replaces the pre-TRID Good Faith Estimate (GFE) and is the precursor to the final Closing Disclosure issued before closing.

Exam Tip

Must arrive within 3 business days of complete application. Use to compare lenders. Replaces the pre-TRID GFE.

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