How to Read a Loan Estimate (LE) Like a Pro: A Florida Buyer's 2026 Walkthrough

What is a Loan Estimate (and when you get it)?

A Loan Estimate is a standardized form lenders must provide shortly after you apply for a mortgage. It helps you compare lenders using the same layout so you're not guessing.

In Florida, the LE matters because some of your biggest surprises come from:

• Homeowners insurance and escrows

• Title and settlement fees

• HOA/condo costs (not always captured in the LE itself)

Why Florida buyers need to read the LE carefully: Insurance volatility, prepaid escrows, and title fee structures can change your payment by hundreds per month—even when the rate looks identical.

Page 1: The big picture (don't skip this)

1) Loan Terms

Look at:

• Loan amount

• Interest rate (your note rate)

• Monthly principal & interest

• Whether prepayment penalty or balloon payment is checked (most buyers want both to say "No")

2) Projected Payments

This is the reality-check section.

• If Estimated Taxes, Insurance & Assessments looks low, your payment can jump later.

• In Broward, Miami-Dade, and Palm Beach, insurance is often the line that changes the most.

3) Costs at Closing

Focus on two numbers:

• Estimated Closing Costs

• Estimated Cash to Close

Cash to close is the number that determines whether your deal is comfortable.

For a full cash-to-close breakdown, read How Much Cash Do Florida Buyers Really Need in 2026?.

Page 2: Where most buyers get confused (fees)

A) Origination Charges (lender fees)

This can include underwriting, processing, and other lender fees.

Tip: Compare lenders by looking at the total of A + B (not just one fee).

B) Services You Cannot Shop For

These are typically required services the lender chooses (like appraisal or credit report).

C) Services You Can Shop For

This is where title-related services often live.

Tip: "Can shop for" does not always mean "should shop for" in every contract timeline, but it does mean you can compare.

D) Total Loan Costs

This is A + B + C.

E) Taxes and Other Government Fees

Recording fees and transfer/filing items show up here.

F) Prepaids

This is often where Florida buyers get surprised:

• Homeowners insurance (often paid up front)

• Prepaid interest

Florida red flag to watch: If homeowners insurance on the LE is far below current market quotes, your payment and cash to close will likely increase before closing.

G) Initial Escrow Payment at Closing

This is your escrow "setup" for insurance and taxes.

If you're unsure why escrows feel high, compare this with your insurance expectations.

H) Other

This can include items like owner's title insurance (varies by transaction structure) or other settlement costs.

In Florida, owner's title insurance is often negotiable depending on who selects the title company, which is why this section varies more than buyers expect.

Want a clean baseline for South Florida closing costs? Use this guide: Average Closing Costs in South Florida: County-by-County Guide.

Page 3: Comparisons + confirmations

Comparisons box

Use it to compare lenders quickly:

• 5-year total (payments + upfront costs)

• APR (not your rate)

• Total interest percentage (TIP)

Other Considerations

This is where you confirm:

• Whether the rate is locked

• Whether the loan is assumable

• Whether there are servicing details

Loan Estimate vs. Closing Disclosure (quick clarification)

The LE is an estimate used for comparison. The Closing Disclosure (CD) is the final version issued before closing. Expect changes—but large differences without explanation should be questioned.

The "LE comparison" checklist

When you have two Loan Estimates side by side, ask:

• Which LE has lower cash to close (with similar down payment)?

• Which LE has lower A + B (core lender fees)?

• Are the insurance and escrow numbers realistic for this property?

• Did either LE include lender credits, and what trade-off is being made?

• Are the title and settlement fees in a reasonable range?

If you're buying a condo, also plan for HOA risk outside the LE. Start here: HOA Fees in Florida: What's Reasonable and What's a Red Flag in 2026.

Next steps

If you want a second set of eyes on your Loan Estimate before you move forward, we can help you compare the numbers in a clear, buyer-first way.

• Book a strategy call: Schedule a call

• Get pre-approved in minutes: Start your application now

• Explore Florida homebuyer programs: You don't need 20% down

EZ Funding Group, Inc. NMLS #349022 | Jaime Charouf NMLS #348964 | Equal Housing Lender