If you’re buying a home, you’ll receive two key documents that look similar — the Loan Estimate (LE) and the Closing Disclosure (CD). Both list your loan terms, interest rate, and closing costs, but they arrive at different stages of your mortgage journey and serve different purposes.
Understanding how they differ helps you review your loan accurately, catch last-minute changes, and close with confidence.
Key Takeaways
Loan Estimate (LE):
A three-page, government-mandated disclosure of your projected loan costs, rate, and terms within three business days of applying for your mortgage.
Closing Disclosure (CD):
A five-page, federally required document that lists your final loan terms and closing costs at least three business days before you close.
Biggest Difference:
Loan Estimate = your early preview.
Closing Disclosure = your final version.
💡 Pro Tip: Don’t collect Loan Estimates and Closing Disclosures from multiple lenders to compare final terms. With Fincast, you only need one. Upload the Loan Estimate from your chosen lender and let vetted lenders compete to beat your deal without extra credit pulls or spam.
What Is a Loan Estimate?
A Loan Estimate (LE) is your first look at the real numbers behind your mortgage. It’s a standardized, three-page document that your lender must send within three business days after you apply for a mortgage loan.
It includes:
Loan type, amount, and interest rate
Estimated monthly payment (principal, interest, taxes, insurance)
Estimated closing costs and cash to close
Whether your rate is locked
Adjustable-rate and prepayment penalty details
The Loan Estimate lets you compare lenders side by side before committing — giving you transparency into your potential loan terms.
👉 Think of your Loan Estimate as your starting point — a clear, regulated snapshot of what your mortgage might look like.
What Is a Closing Disclosure?
A Closing Disclosure (CD) is a five-page final statement that confirms the exact details of your loan and what you’ll owe at closing. Lenders must provide it at least three business days before closing to allow time for review and ask questions..
It includes:
Final loan terms and locked interest rate
Exact monthly payment
Detailed closing costs (lender fees, title, taxes, insurance, etc.)
Total cash needed to close
Escrow account details and lender credits
The Closing Disclosure replaces your earlier estimates with final, verified numbers and is a part of your loan closing package.
Loan Estimate vs Closing Disclosure: Side-by-Side
Feature | Loan Estimate | Closing Disclosure |
|---|---|---|
When You Get It | Within 3 business days after applying for a mortgage loan | At least 3 business days before closing |
Purpose | Provides estimated loan terms and costs | Confirms final, actual loan terms and costs |
Legal Requirement | Federally required under TRID | Federally required under TRID |
Accuracy | Legally-binding estimates based on application info | Final, verified figures |
Best For | Comparing lenders and loan options | Reviewing your exact costs before signing |
How Should I Use Both When Buying a Home?
Your Loan Estimate helps you shop for the most attractive loan.
Your Closing Disclosure helps you confirm and finalize your loan details.
Step 1: Apply for Your Loan
After you submit your loan application, your lender must send your Loan Estimate within three business days.
Step 2: Upload Your Loan Estimate to Fincast
After choosing your lender, upload your Loan Estimate to Fincast. The platform automatically compares your terms against vetted lenders, helping you spot better deals, hidden fees, or stronger offers — all without extra credit pulls or spam.
Step 3: Lock and Finalize
After choosing your lender and finalizing your loan, your lender will prepare your Closing Disclosure.
Step 4: Review Your Closing Disclosure Carefully
Compare it line by line against your Loan Estimate. Any significant fee or rate changes should be clearly explained — or supported by a documented Change of Circumstance.
Why Both Documents Matter
Your Loan Estimate starts the process with transparency; your Closing Disclosure ends it with accuracy.
Reviewing both documents carefully ensures there are no hidden fees or last-minute surprises. If something in your Closing Disclosure looks off, don’t hesitate to ask your lender to explain — even a small fee difference can add thousands to your total loan costs.
By law, under the TRID (TILA-RESPA Integrated Disclosure) rule, lenders must provide both documents, which are designed to protect you from misinformation and unexpected costs.
Compare Loan Estimates Effortlessly Using Fincast
Fincast makes comparing mortgage offers simple and transparent:
Upload your Loan Estimate once, and it benchmarks your offer against multiple vetted lenders.
Determine whether your current offer is competitive or if better offers exist.
Maintain control over your loan decision without submitting multiple applications.
✅You get clarity, confidence, and control before you ever reach the closing table.
FAQs
1. Is the Closing Disclosure the same as the Loan Estimate?
No. The Loan Estimate provides estimated costs, while the Closing Disclosure confirms your final, actual numbers.
2. Can my Closing Disclosure be higher than my Loan Estimate?
Some costs can change slightly, but federal “tolerance rules” limit what lenders can change. Ask your lender for a breakdown if you notice significant discrepancies.
3. When do I get the Closing Disclosure?
At least three business days before closing — this allows enough time to review your figures and ask questions or raise concerns, as needed.
4. What if I find an error on my Closing Disclosure?
Tell your lender immediately. They must correct it and issue a revised CD if needed.
5. How does Fincast help?
Fincast helps you instantly compare your Loan Estimate against vetted lenders to see if your final offer matches what you deserve.
Bottom Line
Loan Estimate = what your loan should cost.
Closing Disclosure = what your loan will cost.
Compare, verify, and save with Fincast so you can close with confidence knowing you got the best deal available to you.
Pro Tips (Save These!)
✅ Always compare your Loan Estimate and Closing Disclosure side by side.
✅ Question any fee or rate changes you didn’t expect.
✅ Use Fincast to confirm your final terms are competitive before you close.
Action Checklist
☑️ Apply for your mortgage and get your Loan Estimate
☑️ Compare offers using Fincast
☑️ Review your Closing Disclosure carefully before signing
☑️ Ask about any unexpected changes
☑️ Close with confidence, knowing you’ve secured your best deal
👉 Ready to compare smarter? Upload your Loan Estimate to Fincast and see how your final offer stacks up today.
Disclaimer: Nothing in this content should be considered financial advice. The examples and data shared are for general information only and may not reflect your personal situation. We do not guarantee the accuracy or completeness of the information provided. Always do your own research and speak with a qualified financial advisor before making any financial decisions.
