What is typically included in the loan estimate provided to a borrower?

The loan estimate provided to a borrower typically includes essential information that outlines the key details of the mortgage. This encompasses the loan terms and closing costs. The loan terms specify the amount to be borrowed, the interest rate, monthly payment expectations, and the duration of the loan. Closing costs detail the fees associated with processing the loan, such as origination fees, appraisal fees, and other related charges. By clearly stating these components, the loan estimate helps borrowers understand their financial commitment and compare different loan offers, fostering informed decision-making.

Options that are not included in the loan estimate, such as property appraisal value or details about down payment sources, do not typically appear in this document, making them less relevant to what the borrower is presented with at this stage. Similarly, specifics regarding interest rate buydown details may be discussed but are not standard inclusions in the initial loan estimate.