Florida Loan Estimate: How to Read It, Compare Lenders & Catch Hidden Costs

By Emanuel Greco, Licensed FL Real Estate Professional · Updated July 2026

Within 3 business days of submitting a mortgage application in Florida, your lender must send you a Loan Estimate (LE) — a standardized 3-page federal form that outlines your loan terms, projected monthly payment, and estimated closing costs. The LE was designed so you can shop and compare multiple lenders side-by-side. Most buyers don't use it that way. This guide shows you how.

When You Receive a Loan Estimate

Federal law (RESPA/TRID) requires lenders to deliver the LE no later than the third business day after receiving your complete application. A complete application includes your name, income, Social Security number, property address, estimated property value, and loan amount. If a lender delays or refuses to provide an LE, that is a red flag.

You can shop multiple lenders simultaneously. Each application triggers an LE, and each hard credit pull within a 14–45 day window (depending on the scoring model) counts as a single inquiry — so shopping doesn't hurt your credit score if you do it within that window.

Page 1: Loan Terms & Projected Payments

Loan Terms Box (Top Right)

Projected Payments Box

This box breaks down your full monthly payment into components: principal & interest, mortgage insurance (if any), and estimated escrow (property taxes + homeowners insurance). In Florida, your escrow will include:

• County property taxes (prorated at closing, then monthly going forward)
• Homeowners insurance (lender requires proof of coverage — Florida rates are among the highest in the nation)
• Flood insurance (if in a FEMA Special Flood Hazard Area — mandatory for federally backed loans)

Page 1: Closing Costs Summary

The bottom of page 1 shows your estimated total closing costs and how much cash you'll need at closing. The key numbers:

• Closing Costs (D): All lender and third-party fees
• Prepaids (F): Prepaid interest, insurance premium, property tax escrow upfront
• Cash to Close: Down payment + closing costs + prepaids − any credits

Page 2: Closing Cost Details — What's Locked vs. What Can Change

This is the most important page for comparison shopping. Closing costs fall into three tolerance categories:

Zero Tolerance (Cannot Increase)

• Lender origination charges (origination fee, discount points, application fee, underwriting fee)
• Transfer taxes and recording fees set by the lender
• Third-party services where the lender chose the provider (e.g., appraisal if lender ordered it)

10% Tolerance (Can Increase Up to 10% Total)

• Recording fees (county clerk)
• Third-party services you can shop for but chose from the lender's list
• Required pest inspection (in Florida: WDO inspection is often lender-required)

No Tolerance (Can Change Freely)

• Prepaid interest (changes with closing date)
• Homeowners insurance (you shop this yourself)
• Title insurance (in Florida, buyer typically pays lender's title policy; seller typically pays owner's policy — but this is negotiable)
• Services you shop for from your own provider (title company, attorney)

How to Compare Loan Estimates Side-by-Side

1. Start with the interest rate and APR. APR includes lender fees folded into the rate — a lower rate with high fees may have a higher APR than a slightly higher rate with no fees.
2. Compare Section A (Origination Charges). This is the lender's cut. Zero-fee lenders build margin into the rate; fee lenders give a lower rate. Run the break-even calculation.
3. Ignore Section E and F for rate comparison. Prepaids and escrow are the same regardless of lender — they're property-specific costs. Don't let a lender show a lower Cash to Close by understating taxes or insurance.
4. Check the rate lock period. A 30-day lock vs. a 60-day lock may cost different amounts. In a slow Florida market, 30 days may be tight — closing delays are common.
5. Ask if the rate is locked on the LE. An LE can be issued with a floating rate and look cheaper today but move against you before closing.

Florida-Specific Items on Your Loan Estimate

• Documentary Stamp Tax on the Note: Florida charges $0.35 per $100 on the mortgage amount. On a $400,000 loan this is $1,400 — shown in Section E (Taxes and Other Government Fees).
• Intangible Tax: Florida's intangible tax on new mortgages is $0.002 per $1 of loan amount. On a $400,000 mortgage: $800. Also in Section E.
• FL Homestead exemption savings: If you're buying a primary residence, remind the lender to use the homestead-exempted tax figure (not the full assessed value) when calculating your escrow estimate — using the full rate overstates monthly payments and Cash to Close.

What Happens After You Receive the LE

You have 10 business days from receipt to communicate your intent to proceed (ITP). If you don't respond, the application expires. Once you indicate intent to proceed, the lender begins ordering the appraisal and moving into underwriting. You should receive the Closing Disclosure (CD) — the final version of your costs — at least 3 business days before closing.