Updated October 2026 by Texas Made Mortgage, Frisco, TX.
Quick answer: The Loan Estimate is a standardized three-page form every lender must deliver within three business days of your application. To compare lenders, look at four things: the interest rate and whether it is locked (page 1), Section A origination charges and any points (page 2), lender credits (bottom of page 2), and the APR and total interest percentage (page 3). Sections B and C (third-party services) and Section E (taxes and government fees) are mostly the same from lender to lender in Texas because title premiums are state-set and recording fees are county-set. Sections F and G (prepaids and escrow) are your own future bills, not lender costs.
Page 1: what are the loan terms and projected payments?
Loan amount, interest rate, monthly principal and interest. Check the rate against your quote and look for the “Can this amount increase?” column. “No” on all three means a fixed rate with no balloon.
Rate lock box. Top right: locked or not, and until what date. An unlocked rate can change; an estimate with a lower unlocked rate is not a better deal.
Prepayment penalty and balloon payment. Should read “No” on standard loans.
Projected payments. Principal and interest, mortgage insurance, and the estimated escrow for taxes and insurance. In Texas the escrow line is large; confirm it reflects the real tax rate for the address, not a placeholder.
Estimated closing costs and cash to close. Summary figures explained on page 2.
Page 2: where are the costs the lender controls?
Section A, origination charges. The lender's own fees: origination, underwriting, processing, and discount points if you chose to pay for a lower rate. This is the section that differs most between lenders.
Section B, services you cannot shop for. Appraisal, credit report, flood certification, tax service. Similar everywhere.
Section C, services you can shop for. Title company fees, lender's title policy, survey, settlement fee. In Texas the title policy premium is set by the state, so only the escrow fee and endorsements vary.
Section E, taxes and government fees. County recording fees. Texas has no mortgage or transfer tax, which surprises buyers from other states.
Section F, prepaids. Homeowners insurance premium for the first year, prepaid interest from closing to month end, and sometimes property tax if closing late in the year.
Section G, initial escrow. The cushion deposited into your escrow account, typically two to three months of taxes and insurance.
Section H, other. Owner's title policy (usually seller-paid in Texas) and home warranty if any.
Lender credits. Shown as a negative number under Section J. A credit means you took a higher rate in exchange for the lender covering costs.
What is the quickest way to compare two Loan Estimates?
Same rate? If not, you are comparing different products. Ask both lenders for the same rate on the same day.
Section A total, minus lender credits. That is the lender's real price for that rate.
APR on page 3, which rolls the lender's costs into the rate for an apples-to-apples number.
Ignore Sections F and G when comparing; prepaids and escrow depend on the closing date and the address, not the lender.
Page 3: what do the comparison numbers mean?
In 5 years: total paid in principal, interest, mortgage insurance and costs, and how much principal is paid down. Useful if you expect to move.
APR: the rate including certain lender costs. Compare it only between loans with the same term and type.
Total interest percentage (TIP): total interest over the full term as a share of the loan amount.
Other considerations: appraisal delivery, assumption (FHA and VA say yes), homeowners insurance, late payment terms, servicing transfer.
What can change between the Loan Estimate and closing?
Federal rules sort fees into three tolerance buckets. Lender fees and services you could not shop for cannot increase at all. Services you shopped for from the lender's list and recording fees can rise up to 10% in total. Prepaids, escrow and services you chose yourself outside the list can change without limit. A revised Loan Estimate is issued when a legitimate change occurs, such as a rate lock, a new appraisal value or a change in loan amount. The final figures arrive on the Closing Disclosure at least three business days before signing; compare it to your last Loan Estimate line by line.
Frequently asked questions
Why does my Loan Estimate show a tax amount that seems high?
Lenders estimate taxes from the current year's bill or a county default rate. Give your loan officer the actual combined rate for the address; our DFW property tax rates page lists them.
Does receiving a Loan Estimate commit me to the lender?
No. You can collect several. Only paying for the appraisal and signing the intent to proceed moves the loan forward.
Where is the seller credit shown?
In the “Calculating Cash to Close” table on page 2 under seller credits, reducing your cash to close.
Have two estimates and want an honest comparison? Send them to a loan officer at Texas Made Mortgage or call 817-567-8014. We will tell you if the other lender's deal is better.
Texas Made Mortgage, NMLS #2676326. This article is general education, not a commitment to lend or an offer of credit. The Loan Estimate is governed by the TILA-RESPA Integrated Disclosure rule; your figures are specific to your application. All loans subject to credit approval. Equal Housing Opportunity.
