Definition
A Loan Estimate is an early mortgage document that shows estimated loan terms, payment, closing costs, and cash to close.
If you are comparing mortgage options, treat loan estimate as one piece of the total cost and risk picture, not a standalone detail.
Why It Matters
It matters because borrowers can use it to compare lenders before committing.
Simple Example
A buyer can compare two Loan Estimates side by side to review APR, fees, and monthly payment.
How to Use This Term
When you see loan estimate on a loan estimate, calculator result, or lender conversation, connect it to three practical questions: how it affects monthly payment, how it affects cash needed now, and how it affects flexibility later.