Check the same loan type and assumptions
Compare purchase with purchase, or a similar refinance structure with another refinance. Confirm estimated loan amount, rate-lock status, term, and whether one quote includes discount points.
Find the true monthly payment
Compare principal and interest separately from property taxes, homeowners insurance, flood coverage, HOA charges and escrow. A payment that omits Florida insurance can seriously understate the household budget.
Review closing costs and cash to close
The Loan Estimate breaks out origination charges, services, taxes, prepaids, escrow funds, credits and cash to close. VA funding fees, if applicable, should be accounted for rather than described as universally waived.
Compare APR and long-term cost
The APR and five-year comparison sections can help evaluate differently structured offers, though the estimates use assumptions. Lower upfront costs may come with higher interest expense over time.
Look closely at refinance trade-offs
When refinancing, compare the existing loan's remaining term with the proposed loan's length, cash-out amounts, all-in costs, and whether expected savings justify refinancing expenses.
Ask the lender to explain differences
Request an explanation for fees, points, credits, escrow assumptions and which costs are expected to change. Comparison works best when the estimates are issued close together.
Common questions
Is the lowest interest rate always best?
Not necessarily. Points, fees and other terms can change the total cost.
Does the Loan Estimate guarantee approval?
No. It provides proposed loan terms and estimates, subject to additional requirements.
How do I assess Florida housing costs?
Ask for address-specific property tax and insurance estimates rather than assuming statewide averages.