You’ll typically have to reach out to a lender to request a mortgage quote, either online or through a phone call. The lender will ask for some basic information regarding your financial situation and what you are looking for. Quotes do not take long and can often be sent immediately or soon after speaking with the lender.
Mortgage quotes are not a guarantee. They are general estimates based on information you provide, information that is rarely confirmed at this stage. To get a more reliable estimate, you may need to apply with the lender.
A loan estimate breaks down different loan costs and what they mean. An LE also shows the total loan amount and estimated monthly payments. To receive an LE, you must apply with a mortgage company and consent to a credit check. The lender uses the information in your application and credit history to put together a custom estimate of loan terms. Given that the lender bases the estimate on real information, loan estimates tend to be more reliable than quotes.
It’s important to note that what's listed on a mortgage loan estimate is just that, an estimate. The final terms and conditions of the loan may be different. Still, it is more official than a simple quote and thus acts as a better, more reliable comparison tool between lenders. It’s a good idea to review the mortgage loan estimate and ask any questions you may have before deciding which lender to work with.
A mortgage quote is an estimate of the terms and conditions that a lender provides to a potential borrower. It typically includes information about the interest rate, fees and closing costs associated with the loan, as well as the monthly payment and the total loan amount. Lenders base a mortgage quote on what a borrower tells them about their situation.
A mortgage loan estimate (LE) includes similar information to a mortgage quote, such as the interest rate, fees, and closing costs associated with the loan, as well as the monthly payment and total loan amount. An LE, however, requires an application and a credit check, meaning the information it is based on is more reliable.
Again, a mortgage quote and an LE are estimates and final loan terms and conditions may differ. The big difference between them is that the LE requires a credit check, which allows a lender to provide a more accurate estimate than with a simple quote. In fact, it requires them to.
Once the lender receives a completed loan application and sends a loan estimate, there are rules to what costs can change and by how much. The Consumer Financial Protection Bureau (CFPB) provides a list of allowable differences between the estimate and final loan costs. If a lender deliberately underestimates your loan costs, the CFPB has the power to enforce their guidelines.
Whether you’re online or talking to someone, the steps are similar:
Here are the steps you can follow to get a mortgage loan estimate:
Still, there are some key things to find for comparison:
Your loan estimate will be a three-page document, including:
Mortgage quotes do not require you to apply. Loan officers can draw one up with minimal information and just a brief conversation. A loan estimate will require an application and at least an initial underwriting.
The loan estimate is therefore slightly more reliable than the quote, meaning you should expect less change between the loan estimate and the final terms of your loan. A loan estimate is a standardized document required by the Consumer Financial Protection Bureau (CFPB). They’re designed to help you easily compare one lender or offer against another. A mortgage quote may look vastly different depending on the lender, making it more difficult to make an apples-to-apples comparison.