A Loan Estimate, shorthand “LE”, is the federally mandated (and notoriously inaccurate) cost estimate & disclosure package lenders are required to provide. The initial LE is required with 3 days of the loan’s registration, and subsequent LEs will be distributed whenever a significant change or checkpoint occurs in your loan.
The following is a great interactive tool explaining how to read and understand the documents. For further info/explanation you can also watch my video. The LEs are the government's way of ensuring you as a consumer are kept in the loop as the loan progresses- you are likely to see several of these as the loan comes together and costs are dialed in.
*Note: The Loan Estimate is simply an estimate, and nothing you're signing is an agreement of terms.
Key Takeaways:
In a standard, classic loan, you CANNOT order an appraisal until all borrowers have e-signed these initial disclosures.