As per law, the mortgage company would have three business days after receiving your application to provide loan estimate or LE of the entire cost details associated with the mortgage. It would be inclusive of the information about your monthly expenses, estimated rate of interest, and the total closing costs. Most loan programs would need mortgage insurance premiums for all applicants despite the down payment amount. It would be pertinent to mention here that the information has been listed on the document to be compared easily.
A loan estimate should not be deemed as a loan offer. However, it would put an obligation on the lender to accept the application of the potential borrower under the terms. All of this would happen if you have the requisite funds and higher credit score. It would be pertinent to mention here that some part of the application would be validated prior to the lender offering the LE (loan estimate).
It would not be wrong to suggest that LE would summarize the financial terms of the mortgage loan. It would also let you compare the offers from several lenders along with different loan programs. However, the document would not need you to accept the loan or obligate the borrower or you to anything other than the provision of providing adequate and authentic information.
Once the mortgage provider has provided you with the estimate, you would be able to negotiate with the mortgage company for better terms. You could also ask the mortgage provider to write down the costs associated with the loan, fees, interest rate, and points. It would enable you to find out whether the offer would be reducing or waiving off any of the fees or offer you a lower interest rate. The rates may not be changed much considering the present times, but some could be shaved off based on your credit score and above-average down payment.