What is a Loan Estimate
on a New Jersey mortgage?

A Loan Estimate is a three-page form you receive after you apply for a mortgage. It shows the estimated interest rate, the monthly payment and the total closing costs for the loan, along with estimated taxes and insurance and how the rate and payments could change later.

You get it early, usually after you apply with a lender and before your loan is approved. The Consumer Financial Protection Bureau says the lender sends it within three business days of getting your application. Most mortgages use the same standard form, which makes two loans easier to compare. Getting one does not mean the loan is approved or denied.

For example, say a buyer in Camden County applies with two lenders in the same week. Each lender sends a Loan Estimate on the same form, so the buyer can set them side by side and compare the rate, the monthly payment and the cash needed at closing before choosing one.

Questions about the numbers on your Loan Estimate, such as the rate or the fees, go to your lender. Your agent can help you plan how the financing fits into your offer and your timeline.