Loan Estimate

In depth

The Loan Estimate, replacing the old Good Faith Estimate, is the first major TRID disclosure. It estimates loan costs, interest rate, projected payments, and other key terms. Misconception: the Loan Estimate is not the final word; the Closing Disclosure later provides actual final figures. Practically, in seller-financed consumer mortgage deals, a Loan Estimate may be required if a licensed RMLO is involved. Most pure FSBO seller-finance deals do not generate a Loan Estimate because TRID does not apply. Buyers should compare the Loan Estimate to the Closing Disclosure to catch unexpected charges. RESPA penalty rules limit how much certain charges can change between the Loan Estimate and Closing Disclosure.