Which form is used to estimate the total costs involved in obtaining a mortgage?

The correct form used to estimate the total costs involved in obtaining a mortgage is the Loan Estimate. This document provides prospective borrowers with crucial information about the loan they are considering, including estimated monthly payments, interest rates, and closing costs. The Loan Estimate is required by law and must be provided by lenders within three business days of receiving a loan application, enabling borrowers to compare costs and terms of different loans effectively.

The Closing Disclosure, while also an important document, is provided later in the process and outlines the final terms and costs of the mortgage after the loan has been approved, rather than serving as an initial estimate. The Final Loan Agreement is a detailed document that outlines the final terms once the loan is finalized, which is not used for estimating costs. The Home Purchase Agreement pertains to the purchase of a property and does not provide a detailed breakdown of mortgage costs. Understanding these distinctions is vital for identifying how estimates are presented to borrowers at different stages of the mortgage process.