These two documents are required by federal law and give you a clear picture of your loan terms and costs at two different stages of the process. Comparing them carefully helps you catch errors or unexpected changes before closing.
The Loan Estimate
You’ll receive a Loan Estimate within three business days of applying for a mortgage. It outlines your estimated interest rate, monthly payment, and closing costs, giving you a way to compare offers across different lenders using a standardized format.
The Closing Disclosure
You’ll receive the Closing Disclosure at least three business days before your closing date. It reflects the final, actual terms of your loan, including the exact closing costs you’ll owe.
What to Compare Between the Two
- Interest rate: Should match unless you changed your rate lock or loan terms.
- Loan amount: Should be consistent unless your purchase price or down payment changed.
- Closing costs: Some fees can’t increase at all, others are limited in how much they can increase, and some can change freely — ask your lender to explain any differences.
- Cash to close: The total amount you need to bring to closing.
Why the Three-Day Review Period Matters
The three-business-day waiting period after receiving your Closing Disclosure gives you time to review the final numbers and ask questions before signing. Use this window carefully — don’t skip reading the document just because closing feels close.