1. The rate isn't actually locked
Check the Rate Lock line at the top of page 1. If it says NO, your interest rate, points, and lender credits can still change any day until you lock. Plenty of buyers think they're locked because someone said a number on the phone. The Loan Estimate is what counts, so make sure it says YES with an expiration date.
If you're not locked yet, that's not automatically bad. Just know it, and ask when and how you'll lock.
2. Section A is stacked with vague fees
Section A is the lender's own charges, and it's the cleanest place to compare lenders. A red flag is a pile of fees with vague names, like application, processing, underwriting, admin, and document prep, all on one Loan Estimate. Ask what each one is for and whether it's negotiable. Compare the Section A total, not each line.
3. Points you didn't ask for
Discount points in Section A buy your rate down, and some offers include them by default to make the rate look lower. One point is 1% of the loan amount. If you see points, ask what the rate would be with zero points, then decide if paying them makes sense with a break-even calculation.
Run it: discount points calculator.
4. A big lender credit with a higher rate
A lender credit in Section J lowers your closing costs, but it usually comes from taking a higher interest rate. That's not wrong, it's a trade. The red flag is when you don't know you made it. Compare the rate and the In 5 Years line on page 3 against an offer without the credit.
5. Escrow that looks too light
If the estimated escrow on page 1 looks low for the property, the property tax figure may be a placeholder. In Texas especially, property taxes are a big part of the payment. A light escrow makes the payment look cheaper now and then jumps later. Ask what tax figure they used and where it came from.
6. The seller credit is missing
If your contract says the seller is paying some of your costs, it should show up in Calculating Cash to Close on page 2. When the Seller Credits line says $0 and your contract says otherwise, your cash to close is overstated, and it can throw off what you plan to bring. Ask your lender and agent to fix it.
7. Missing or odd taxes in Section E
Section E is government fees, and what belongs there depends on the state. Texas has no real estate transfer tax, so a Texas Loan Estimate usually shows just recording fees; a "transfer tax" line is worth asking about. Tennessee has a transfer tax and a mortgage tax, so a Tennessee Loan Estimate with only recording fees is probably missing something.
Want a second set of eyes?
Walk through yours with the Loan Estimate decoder, or just send it to me.
Watch the video
Follow @GoRascalJohn Open on TikTok
FAQ
What's the most common Loan Estimate mistake?
Comparing offers only on the interest rate. Points, lender credits, and Section A fees can make a lower rate cost more. Compare Section A and the In 5 Years line too.
Can a Loan Estimate change?
Yes, when something legitimately changes, like your loan amount, the appraisal, or locking your rate. The lender issues a revised Loan Estimate.
Should I get more than one Loan Estimate?
Yes. Credit scoring models generally treat multiple mortgage inquiries in a short shopping window as one, so comparing a few lenders is smart.
Send me your Loan Estimate and I'll look it over myself.
Text or call (713) 728-6662, DM @GoRascalJohn on TikTok or Instagram, or use the short form. Cover your Social Security and loan numbers first.
By John Stafford, Loan Officer, NMLS #2470539. John Stafford NMLS #2470539 | GoRascalJohn powered by GoRascal Inc. NMLS #2072896. Licensed in Texas and Tennessee. Equal Housing Opportunity. This article is general education, not legal advice, a loan approval, or an offer of credit. Example figures are illustrations only. Last updated October 22, 2026.