What Is a Loan Estimate (LE) in NH Real Estate and How Should Buyers Read It?

🏡 What Is a Loan Estimate (LE) in NH Real Estate and How Should Buyers Read It?

When you apply for a mortgage in New Hampshire, your lender must provide a Loan Estimate (LE) within three business days.

This standardized, three-page document breaks down the loan terms, projected closing costs, and estimated monthly payment — allowing buyers to compare lenders side-by-side.

Here’s how Loan Estimates work and why they matter in NH real estate.

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What Is a Loan Estimate (LE)?

A Loan Estimate (LE) is a required mortgage disclosure that outlines the key details of a buyer’s loan, including:

✔ Interest rate

✔ Monthly payment

✔ Closing costs

✔ Estimated cash needed at closing

✔ Loan type and terms

✔ Whether the rate is locked

✔ Required insurance or escrows

Every lender uses the same standardized federal form, so buyers can easily compare offers.

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When Do Buyers Receive a Loan Estimate?

Lenders must send the Loan Estimate within 3 business days after receiving:

✔ Borrower’s name

✔ Income information

✔ Social Security number

✔ Property address

✔ Estimated value

✔ Loan amount requested

This is an early snapshot — not the final cost.

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Key Sections of the Loan Estimate

1. Loan Terms (Page 1)

Shows:

✔ Loan type (Conventional, FHA, VA, USDA)

✔ Interest rate

✔ Monthly principal & interest

✔ Whether the rate can change

✔ Prepayment penalties (rare in NH)

✔ Balloon payments

2. Projected Payments (Page 1)

Breaks down:

✔ Principal & interest

✔ Mortgage insurance

✔ Estimated property taxes

✔ Estimated homeowner’s insurance

✔ Total monthly payment

This helps buyers budget realistically.

3. Closing Costs (Page 1)

Lists:

✔ Total closing costs

✔ Estimated cash to close

This number may adjust as the loan progresses.

4. Closing Cost Details (Page 2)

Provides a line-by-line breakdown:

✔ Appraisal fee

✔ Credit report fee

✔ Title work

✔ Lender charges

✔ Recording fees

✔ Prepaids & escrows

Buyers should compare lender-controlled fees carefully.

5. Comparisons (Page 3)

Shows how different the loan could be over:

✔ 5 years

✔ Total interest paid

✔ APR comparison

Great for evaluating competing offers.

6. Other Considerations (Page 3)

Includes important details:

✔ Appraisal requirements

✔ Assumption rules

✔ Late payment fees

✔ Whether the lender will keep or transfer the loan

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Why the Loan Estimate Matters in NH

The Loan Estimate helps buyers:

✔ Compare lenders clearly

✔ Understand true monthly costs

✔ Avoid surprise fees

✔ Choose the right loan type

✔ Know exactly what they’re signing up for

It’s one of the most important early documents in the mortgage process.

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Loan Estimate vs. Closing Disclosure

Loan Estimate (LE): Early estimate

Closing Disclosure (CD): Final numbers before closing

The two should be very similar unless something changed in the loan.

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Bottom Line

A Loan Estimate gives NH homebuyers a clear breakdown of their mortgage terms, closing costs, and monthly payments. It’s an essential tool for comparing lenders and understanding the true cost of buying a home.

Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com