By BrightSide Lending – Your Trusted Michigan Mortgage Experts

Buying a home is exciting—but it can also feel like learning a whole new language. One of the most important documents you’ll receive when applying for a mortgage is the Loan Estimate (often called the “LE”). It’s your crystal ball into the real cost of your loan.

But here’s the catch: not all lenders make it easy to understand, and hidden fees can sneak in if you don’t know where to look.

Today, we’ll break down the Loan Estimate in plain English—so you can spot junk fees, compare offers, and feel confident in your decision.

🧾 What Is a Loan Estimate?

A Loan Estimate is a standardized 3-page form every lender must provide within 3 business days of receiving your application. It shows your:

  • Loan amount
  • Interest rate
  • Monthly payment
  • Closing costs
  • And whether things like taxes and insurance are included

Think of it as the price tag for your mortgage.

📄 Page 1: The Big Picture

✅ Key Sections to Focus On:

  • Loan Terms
    • Check if your interest rate is fixed or adjustable.
    • Watch for balloon payments or prepayment penalties (these are red flags).
  • Projected Payments
    • See how your monthly payment may change over time if taxes or insurance are estimated.
  • Costs at Closing
    • This shows a ballpark total of what you’ll owe on closing day.

🔍 BrightSide Tip: Some lenders lowball this section to make their offer seem cheaper. We don’t play that game—we show the full picture upfront.

📄 Page 2: The Itemized Breakdown

Here’s where most “gotcha” fees live—if you don’t know where to look.

🛠️ Loan Costs (Section A–C):

  • Section A (Origination Charges):
    • These are lender fees. Look for terms like “Processing Fee,” “Underwriting Fee,” or “Application Fee.”
    • BrightSide Lending charges $0 in junk fees—ask other lenders to match that.
  • Section B (Services You Cannot Shop For):
    • Appraisal, credit report, flood certification. These are third-party but often fixed by the lender. Check if the fees are excessive.
  • Section C (Services You Can Shop For):
    • Title, closing, settlement agent. You can choose your own title company!

🔍 BrightSide Tip: We’ll send you a shopping worksheet to compare these services and save money.

📄 Page 3: The Fine Print & Comparisons

📊 Comparisons Table:

This section lets you compare:

  • APR (the true cost of the loan)
  • Total interest paid over 5 years
  • How much of your payments go to principal vs. interest

If most of your first 5 years’ payments are going to interest—you may want to reconsider the term or structure of the loan.

⚠️ How to Spot Hidden Fees or Gimmicks

  • “Lender Credits” that disappear later
    Some lenders show big credits to lower your costs—but later raise your rate or yank those credits before closing.
  • Underestimated escrow costs
    Low tax/insurance numbers can make a monthly payment look cheaper than it really is.
  • Sneaky origination fees disguised as points
    Watch for “Discount Points” that don’t actually reduce your rate enough to justify the cost.

💡 The BrightSide Promise

We believe in no surprises, no junk fees, and total transparency. When we give you a Loan Estimate, we walk through it line-by-line. If another lender gives you one, we’ll review it with you—for free—and show you how to compare apples to apples.

Buying a home doesn’t have to be overwhelming. We’re here to make it make sense.

📞 Have a Loan Estimate? Let’s Review It Together

Call us today at 586‑270‑5070 or email jeffkaltz@brightsidelending.com to get a second opinion on your LE. Even if you’re working with another lender—we’ll help you spot the hidden fees they hope you don’t notice.