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Revised Mortgage Estimates: When the Price Changes Before Closing

A revised mortgage estimate can reflect a real change in your application, a change in the loan you requested, or a problem that deserves an explanation. Keep each version instead of replacing the old one. Comparing what changed, when it changed, and what you had already agreed to makes the conversation with your loan officer much more concrete.

The questions below use selected Consumer Financial Protection Bureau guidance, adapted and organized by Fynoptic. Source links and the dates displayed by those sources are provided at the end.

I received a revised Loan Estimate from my lender showing a higher interest rate and increased closing costs. What does this mean?

When important information changes, your lender is required to give you a revised Loan Estimate showing how this new information affects your loan terms and closing costs.

It is illegal for a lender to intentionally underestimate charges for services on the Loan Estimate, and then surprise you with higher charges on a revised Loan Estimate or Closing Disclosure. However, a lender may increase the fees it quoted you on the Loan Estimate if certain circumstances change. Here are some common reasons why the estimated charges in your Loan Estimate might increase:

  • You decide to change the kind of loan, for example moving from an adjustable-rate to a fixed-rate loan
  • You decide to reduce the amount of your down payment
  • The appraisal on the home you want to buy came in lower than expected
  • You took out a new loan or missed a payment on another loan, and your credit score has changed
  • Your lender could not verify your overtime, bonus, or other income
  • The interest rate on your loan was not locked, and locking the rate caused the points or lender credits to change

If your lender gives you a revised Loan Estimate, you should look it over to see what has changed. Ask your lender:

  • "Can you explain why I received a new Loan Estimate?"
  • "How is my loan transaction different from what I was originally expecting?"
  • "How does this change my loan amount, interest rate, monthly payment, cash to close, and other loan features?"

Note: You will not receive a Loan Estimate or Closing Disclosure if you are shopping for:

For these kinds of loans, you should receive Truth-in-Lending disclosures. If you are shopping for a reverse mortgage, you will also receive a Good Faith Estimate (GFE) and a HUD-1 or HUD-1A Settlement Statement.

Can my final mortgage costs increase from what was on my Loan Estimate?

Some mortgage costs can increase at closing, but others can't. It is illegal for lenders to deliberately underestimate the costs on your Loan Estimate. However, lenders are allowed to change some costs under certain circumstances.

Interest rate

If your interest rate is not locked, it can change at any time. Even if your interest rate is locked, your interest rate can change if there are changes to your application information or if you do not close within the rate-lock timeframe. Check at the top of page 1 of your Loan Estimate to see whether your rate is locked, and until when. Learn more about how rate locks work.

Closing costs

There are three categories of closing costs. Some closing costs the lender can increase by any amount, some the lender can increase by up to 10 percent, and some the lender can’t increase at all.

However, under certain circumstances these rules do not apply. For example, your lender is allowed to change your closing costs without restriction if:

  • You decided to get a different kind of loan or change the amount of your down payment
  • The appraisal on the home you want to buy came in higher or lower than expected
  • You took out a new loan or missed a payment and that has changed your credit
  • Your lender could not document your overtime, bonus, or other income

These types of situations are called a “change in circumstances”.

Costs that can increase by any amount

These costs are not controlled by the lender, and can increase by any amount at any time:

  • Prepaid interest, property insurance premiums, or initial escrow account deposits
  • Fees for services required by the lender that you have shopped separately for, if you choose a service provider that is not on the lender’s written list of providers
  • Fees for third-party services that the lender does not require

Costs that cannot increase at all

If there is a “change in circumstances,” these costs can change by any amount, but otherwise they cannot change at all:

  • Fees paid to the lender, mortgage broker, or an affiliate of either the lender or mortgage broker for a required service
  • Fees for required service that the lender did not allow you to shop separately for, when the provider is not affiliated with the lender or mortgage broker
  • Transfer taxes

Costs that can increase by up to 10 percent

If there is a “change in circumstances,” these costs can change by any amount. If there is no change in circumstances, then the total of these costs cannot increase by more than 10 percent:

  • Recording fees
  • Fees for required services when you have chosen a third-party service provider on the lender’s written list of providers (if the provider is an affiliate of the lender, the cost cannot change at all)

What happens when the costs change?

If your application has a “change in circumstances,” you will likely receive a revised Loan Estimate. If the costs have increased more than the allowed limits and your application has not had a “change in circumstances,” you are entitled to a refund of the amount above the allowable limits.

My loan officer said that I need to express my —Intent to Proceed— in order for my mortgage loan application to move forward. What does that mean?

When you are shopping for a loan, you may contact more than one potential lender to compare available options. If you intend to proceed with a particular mortgage application, you must notify your lender of your intent to proceed by telling the lender you want to move forward with the application for that loan.

If you're applying for a mortgage, it is a good idea to request Loan Estimates from three or more lenders and compare them to determine which loan offer is best for you.

After you receive your Loan Estimates, it's up to you to decide whether to move forward with a mortgage application. If you decide not to proceed with an application for a particular loan, you don't need to do anything further. If you do not communicate further with the lender, the lender will most likely close out your application.

If you do intend to proceed with a particular mortgage application, you must take the next step and tell the lender you want to move forward with the application for that loan. The lender is only required to honor the terms of the Estimate for 10 business days so it is important to notify the lender within those 10 days. If you wait more than 10 business days after you receive a Loan Estimate to tell the lender you intend to proceed, the lender can revise the terms and estimated costs and provide you with a revised Loan Estimate.

The lender cannot assume that silence means you intend to proceed. When you first receive a Loan Estimate, find out what the lender's requirements are for proceeding with a loan application. After you have reviewed and compared Loan Estimates, make sure you take the next step of notifying the lender within 10 business days if you want to proceed with a loan application. Ask questions if any of the steps or information is unclear.

Once you've notified the lender, you typically then need to pay an application or appraisal fee and provide full supporting documentation of your income, assets, and other financial information. If you delay providing documentation or other items necessary to move your loan application forward, your lender may need to delay your closing. For example, documentation of your income and assets is typically needed to approve your loan, so you'll want to send that information to the lender you have chosen as soon as possible.

A delayed closing can be costly—your rate lock could expire. If your purchase contract specifies that you must close within a certain time frame, you could risk losing the home and the deposit you gave the seller. So be sure to send requested information to your lender as soon as possible.

Sources and further reading

The CFPB source passages are U.S. government work in the public domain. Fynoptic has selected, organized, and adapted the material for this guide, including corrections identified through the additional sources listed above. Sources accessed October 27, 2026. This use does not imply agency endorsement or affiliation.

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