Updated September 28, 2026 by Tony Walton, Principal Broker, New England Landmark Realty

Quick Answer

The Loan Estimate is the three-page form your lender must send within three business days of your mortgage application. The Closing Disclosure is the five-page form with your final loan terms and costs, which you must receive at least three business days before closing. Compare the two line by line: federal rules limit how much certain costs can increase, and a few big changes give you a new three-day review period.

Key Takeaways

Two-Sentence Summary

The Loan Estimate helps you choose a lender; the Closing Disclosure confirms what you'll actually pay. Some costs, like lender fees and transfer taxes, can't go up at all unless your circumstances change, so an unexplained increase is worth questioning.

If You Only Remember 3 Things

  1. Loan Estimate: within 3 business days of applying. Closing Disclosure: at least 3 business days before closing.
  2. Lender fees and transfer taxes generally can't increase; recording fees and certain third-party fees can rise only up to 10% in total.
  3. A higher APR beyond set limits, a new prepayment penalty, or a change in loan product restarts the three-day review.

Quick Facts

  • Loan Estimate: 3 pages; due within 3 business days of application
  • Closing Disclosure: 5 pages; due at least 3 business days before closing
  • New 3-day review triggers: APR up more than 1/8 point (fixed) or 1/4 point (adjustable), a prepayment penalty added, or a loan product change
  • Vermont line item to check: property transfer tax

What Is a Loan Estimate?

Your lender must send a Loan Estimate within three business days of receiving your application. It shows your estimated interest rate, monthly payment, loan terms, and closing costs, plus estimated property taxes and homeowners insurance. Use Loan Estimates from two or three lenders to compare offers; see our guide on how to shop for a mortgage in Vermont.

What Happens After You Choose a Lender

Once you tell a lender you want to proceed, you'll provide documents such as pay stubs, tax returns, bank statements, and ID. The lender orders the appraisal, verifies your information, and works toward final approval. If something changes along the way, such as the loan type, your down payment, the appraised value, or your credit, the lender can issue a revised Loan Estimate.

What Is a Closing Disclosure?

The Closing Disclosure is a five-page form with the final details of your loan: the loan terms, your projected monthly payments, and the fees and other costs to get your mortgage. You must receive it at least three business days before closing, which gives you time to compare it with your Loan Estimate and ask questions.

Which Costs Can Change Between the Two?

  • Can't increase (unless your circumstances change): fees paid to the lender, the mortgage broker, or their affiliates for required services, and transfer taxes.
  • Can increase up to 10% in total: recording fees, and fees for required services when you chose a provider from the lender's written list.
  • Can change by any amount: prepaid interest, homeowners insurance premiums, initial escrow deposits, and services you shopped for on your own.

If a "can't increase" cost goes up without a change in your circumstances, ask your lender to explain it before you close.

Changes That Give You a New Three-Day Review

Most corrections, like fixing a typo or adjusting for an inspection credit, don't delay closing. Only three changes require a new three-business-day review period:

  • The APR rises by more than 1/8 of a percentage point on a fixed-rate loan, or more than 1/4 point on an adjustable-rate loan.
  • A prepayment penalty is added.
  • The loan product changes, for example from a fixed rate to an adjustable rate.

Vermont Costs to Look For

Vermont's property transfer tax appears on both forms, and as a transfer tax it's one of the costs that can't increase unless your circumstances change. For a primary residence, the rate is 0.5% on the first $200,000 and 1.47% above that; a second home pays 3.62%; and a VHFA-financed primary residence is exempt on the first $250,000. See our Vermont closing costs guide for the full list.

Want a second set of eyes on your closing documents? Our Local Resources page lists real estate attorneys, banks and mortgage brokers, and other central Vermont professionals.

Find local attorneys and lenders →

Estimate your costs before you apply. Our free Vermont Home Cost Calculator estimates your payment, Vermont property transfer tax, and cash to close, so your Loan Estimate holds no surprises.

Try the Vermont Home Cost Calculator →

Frequently Asked Questions

When do I get my Loan Estimate?

Within three business days after your lender receives your application.

When do I get my Closing Disclosure?

At least three business days before your closing.

Can my closing costs be higher than my Loan Estimate?

Some can. Lender fees and transfer taxes generally can't increase; recording fees and some third-party fees can rise up to 10% in total; prepaid interest, insurance, escrow deposits, and services you shopped for can change by any amount. A change in circumstances can reset these limits.

Will changes to my Closing Disclosure delay my closing?

Usually not. Only an APR increase beyond set limits, an added prepayment penalty, or a change in loan product requires a new three-business-day review.

Is the Vermont transfer tax on my Closing Disclosure?

Yes. Vermont's property transfer tax appears as a transfer tax, and it's one of the costs that generally can't increase from your Loan Estimate.

What should I do if the numbers don't match?

Ask your lender to explain every difference before closing, and compare page by page with your Loan Estimate. A real estate attorney can also review the documents.

What to Do Next

Call our office at 802-253-4711, reach Tony Walton directly at 802-233-4107, or contact us.

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