Where do you look first when you get a Loan Estimate?

For most people, the first time they see one is the first time they’ve ever laid eyes on something like it.
And even if you’ve bought a home before…
You probably don’t remember which parts actually matter — or why some of these charges even exist.

I want to walk you through the parts of the Loan Estimate that truly impact your closing costs.
No jargon.
No industry-speak.
Just a clean breakdown so you know exactly what you’re looking at when you see these numbers again.

By the time you’re done reading this, you’ll understand your Loan Estimate better than most people in the industry.

Let’s break it down….BTW, this is a little longer than usual. You can save it for later when the time is right—your real estate agent and your loan officer.

They actually talk far less than you think.
And that gap shows up at the worst possible moment — when you’re ready to make an offer.

This is what your lender charges to do the loan.
Think of it as the cost for the “loan itself.”

It usually includes:
– Origination fee
– Points (buying down the rate)
– Underwriting or processing fees

Plain-English version:
Section A is what you pay the lender directly for the rate and service you’re getting.

Question to ask your loan officer:
“Is any part of Section A optional, and what changes if I adjust it?”

Why ask:
Because sometimes you’re choosing between a higher rate and lower fees… or a lower rate with higher upfront cost.
You want to understand exactly what you’re paying for.

These are third-party services your lender requires, and you don’t choose who performs them.

Things like:
– Credit report
– Flood certification
– Appraisal (in most cases)
– Verification fees

Plain-English version:
These are mandatory checks lenders need to legally approve your loan.

Question to ask your loan officer:
“Which charges here are true third-party fees, and which ones are lender-controlled?”

Why ask:
You want to make sure none of these fees are padded or duplicated — and that you’re only paying for what’s actually required.

This section gives you options.
These are services you’re allowed to choose yourself.

Common examples:
– Title search
– Title insurance
– Settlement or closing fees
– Survey (in some states)

Plain-English version:
You can shop these, compare quotes, and save money if you want to — though most buyers stick with what their agent or title company recommends.

Question to ask your loan officer:
“Can you walk me through the pros and cons of shopping for these, and do you recommend I stick with your preferred title company?”

Why ask:
You’re making sure you’re not overpaying…
but also not accidentally choosing a company that could slow down your closing.

This is Sections A + B + C added together.

Plain-English version:
This is the total cost of getting the loan — lender fees plus all required services.

Question to ask your loan officer:
“Is this number typical for my loan type and my price range?”

Why ask:
Because if something looks high (or low), you should know why.
This is your first “big picture” number to compare across lenders.

These are government charges related to recording your mortgage and property transfer.

Usually includes:
– Recording fees
– Transfer taxes (depending on your state)

Plain-English version:
This is what the county or state charges to legally record the property in your name.

Question to ask your loan officer:
“Are these state-specific, and is there any way to confirm the exact amounts before closing?”

Why ask:
Because these aren’t negotiable…
and you want to know they’re accurate — not estimates that jump later.

This is everything you’re on the hook for:
Loan costs, title fees, taxes, prepaid items, insurance, and sometimes escrows.

This is the number most people stare at — and panic — because it’s big.

Plain-English version:
Section J is your all-in number.
Not just what the lender charges — but everything needed to close.

Question to ask your loan officer:
“Which parts of Section J are truly fixed — and which parts can the seller potentially cover?”

Why ask:
Because some parts can be negotiated.
Some can be reduced.
Some can be removed.
And some you simply can’t avoid.

Knowing the difference helps you save money and structure a smarter offer.

Your Loan Estimate shouldn’t be intimidating.
It’s just a list of everything required to buy a home — and once you know where to look, it becomes a simple financial roadmap.

My goal is simple:
When you get your next Loan Estimate, I want you to say,
“Okay… I know exactly what this is — and I know exactly what to ask.”

And now?
You do.

Easy one this week. Save this email. I know it will come in handy when you’re ready.

Continue learning, plan smart, and, as always, don’t pay more than you need to for your home. 🏡💡

- Brandon Brotsky

P.S. New here? Start with our Smart Homebuyer Welcome Kit, it’s a simple guide to rates, payments, and strategies that could save you thousands.