The Loan Estimate helps you compare offers. The Closing Disclosure shows final loan costs. Check both the monthly payment and cash due before signing.
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- Compare Loan Estimates
- Choose your loan
- Review Closing Disclosure
- Confirm cash to close
Ask questions about any changed numbers before closing.
Compare offers line by line
Use official Loan Estimates to compare the loan amount, term, interest rate, monthly payment and upfront costs. Check whether a quoted rate is locked. Keep the price, down payment and loan structure consistent when comparing.
Look beyond the rate
Points are upfront charges associated with a lower rate. Lender credits can reduce upfront costs in exchange for a higher rate. Compare the payment and cash needed, and ask how long you would need to keep the loan for a tradeoff to make sense.
Review the final disclosure
For most mortgages covered by these rules, you must receive the Closing Disclosure at least three business days before closing. Check names, loan terms, payment and cash to close against the latest Loan Estimate. Ask for an explanation of changes.
Check what you pay separately
Confirm which taxes and insurance costs are in escrow and which bills you must pay yourself. HOA dues may be separate. Ask your closing agent to explain the final cash-to-close figure before you send funds.
Use a side-by-side quote sheet
Give each quote a date and record the loan type, term, down payment, rate, APR, points, lender credits, payment and lock period. Separate differences in the loan itself from differences in estimated property expenses.
Review documents before the signing appointment
Write down every number or term you do not understand. Ask the lender or closing agent to explain it before signing. Keep your final documents with the purchase records so you can check payment and escrow details afterward.
SEE THE NUMBERS
A simple points break-even example
| Illustrative quote | Upfront points | Monthly principal & interest |
|---|---|---|
| Quote A | $0 | $2,000 |
| Quote B | $3,000 | $1,950 |
| Difference | $3,000 more | $50 less per month |
| Simple break-even | $3,000 ÷ $50 | 60 months |
Illustrative amounts, not actual rate quotes. This simple calculation ignores investment returns, taxes, balance differences and other costs. Selling or refinancing before 60 months changes the tradeoff.
Key terms, in plain English
- Interest rate
- The rate used to charge interest on the loan balance.
- APR
- A broader cost measure that includes certain loan charges as well as interest.
- Points
- Upfront charges paid for a lower interest rate.
- Lender credit
- Money toward upfront costs, often in exchange for a higher rate.
- Rate lock
- An agreement to hold a rate under stated terms for a defined period.
Common mistakes to avoid
- Comparing one locked rate with an unlocked quote as if the terms matched.
- Counting a lender credit as free money without comparing the rate.
- Signing before understanding why final costs changed.
Questions to ask
Bring these to your lender, agent or housing counselor, as appropriate.
- Is this rate locked, and when does the lock expire?
- Which fees can I shop for?
- Why did this amount change from the latest Loan Estimate?
Common questions
Is the lowest APR always the best choice?
APR helps compare costs, but consider the same loan structure, upfront cash, monthly payment and how long you expect to keep the loan. Ask for explanations of any unusual features.
What should I compare on the final disclosure?
Review the borrower names, loan amount, term, rate, payment, escrow items, closing costs and cash to close. Ask about differences from your most recent estimate.
Can the monthly total change on a fixed-rate mortgage?
The principal-and-interest payment can stay fixed while taxes, insurance and other housing costs change. Check each part of the total.
Your next steps
- Save every Loan Estimate.
- Ask about changed terms and fees.
- Confirm your final payment and cash to close.
Sources and further reading
Official resources checked October 12, 2026. Loan and program rules can change. Confirm the requirements for your own purchase.
Educational information and planning examples; not a loan offer or personalized financial advice.