Page 1: the big picture

The top section shows who you are, the property, the sale price, the loan term (for example, 15 or 30 years), the purpose (purchase or refinance), the product (fixed rate or adjustable) and the loan type (conventional, FHA, VA or other).

Look for "Rate Lock." It tells you whether your interest rate is locked and, if so, until when. If it isn't locked, the rate can change before closing.

Loan Terms lists the loan amount, interest rate and monthly principal and interest. Next to each one is a yes-or-no answer to "Can this amount increase after closing?" It also tells you whether the loan has a prepayment penalty or a balloon payment. If any of these say "YES," ask your lender to explain exactly how and when.

Projected Payments shows your estimated total monthly payment over time, including mortgage insurance (if any) and estimated escrow for property taxes and homeowners insurance. It also shows which of those costs are included in escrow.

Costs at Closing gives two key totals:

• Estimated Closing Costs: the total of loan costs and other costs, minus any lender credits.
• Estimated Cash to Close: what you'll need to bring to closing, including your down payment.

Page 2: closing cost details

This page breaks those closing costs into lettered sections.

Sections A through C add up to Total Loan Costs (D). Sections E through H add up to Total Other Costs (I). Together they make Total Closing Costs (J), after any lender credits.

The Calculating Cash to Close table then walks from your closing costs to your cash to close, accounting for your down payment, deposit (earnest money), seller credits and other adjustments.

Tip: when you compare lenders, look closely at Section A. It's the part most directly controlled by the lender.

Page 3: comparisons and fine print

Comparisons gives three numbers designed for side-by-side shopping:

• In 5 Years: how much you'll have paid in the first five years, and how much of that went to principal.
• Annual Percentage Rate (APR): your costs over the loan term expressed as a yearly rate. It's usually higher than the interest rate because it includes certain fees.
• Total Interest Percentage (TIP): the total interest you'd pay over the life of the loan as a percentage of the loan amount.

Other Considerations covers the appraisal, whether the loan can be assumed by a future buyer, homeowners insurance requirements, late payment terms and the lender's servicing plans.

Questions worth asking

1. Is my rate locked, and until when?
2. Which costs on this estimate could change before closing, and by how much?
3. Am I paying points? What would the estimate look like without them?
4. Which services in Section C can I shop for, and do you have a list of providers?
5. What's included in my escrow, and how was the estimate for taxes and insurance calculated?

What happens next

The Loan Estimate is an estimate, not a final bill. At least three business days before closing, you'll get a Closing Disclosure with the final numbers in a matching layout. Compare the two side by side and ask about anything that moved.

The Consumer Financial Protection Bureau has more homebuying explainers at consumerfinance.gov.

Got a Loan Estimate and want someone to walk through it with you? Send KT a note.

About the house

1. How old are the roof, the HVAC system and the water heater? These are some of the biggest near-term costs in any house.
2. Has there been any foundation work? If so, ask for the paperwork and whether any warranty transfers to you.
3. Any history of water getting in? Leaks, flooding, drainage problems or past insurance claims.
4. What does the seller's disclosure say? Read the whole thing, and ask about anything vague.
5. Is it on city water and sewer, or a well and septic? When was the septic last pumped or inspected?
6. What's been updated, and was it permitted? Additions and major electrical or plumbing work are worth asking about.

About the location

1. Which school district serves this exact address? Confirm it with the district, not just the listing.
2. Is it inside city limits? That affects taxes, utilities, trash and local rules.
3. What's the flood zone? Check the FEMA map and ask the neighbors what happens in a heavy rain.
4. Is there an HOA or deed restrictions? Get the rules and the dues before you offer.
5. What's nearby that you can't see from the listing? Rail lines, highways, future construction, a busy church parking lot on Sundays. Drive by at different times.

About the cost

1. What are the current property taxes, and which taxing units apply? Look it up on the appraisal district site. The seller's exemptions (like a homestead or over-65 exemption) don't carry over to you in future years, so your bill may differ from what the seller paid.
2. What will insurance cost? Get a quote before your option period ends. Roof age and location can change it a lot.
3. What do utilities usually run? Some sellers will share recent bills.
4. What will you need to fix or replace in the first year? Budget for it now.
5. Does your lender's estimate still fit at this price? Ask your lender to update your numbers for this specific house before you offer.

About the deal

1. How long has it been on the market, and have there been price changes?
2. Are there other offers? Your agent can sometimes find out.
3. What matters most to the seller? A quick close, a later move-out, a clean offer with few requests? Sometimes terms matter as much as price.
4. How long of an option period do you need? Make sure it's enough time to schedule every inspection you want.
5. How much earnest money is customary here? Your agent can explain how it's handled and when it's at risk.
6. What will you ask the seller to cover? Repairs, closing costs or nothing at all, depending on the market and the house.

One more question, for yourself

If this house needed one surprise repair in the first year, would you still be okay? If the answer is yes, you're probably shopping in a healthy range. If it makes you nervous, it's worth another look at the budget.

Want help running the numbers on a specific Longview house before you offer? Reach out to KT. He's been helping East Texas buyers since 2003.

Before you start shopping

• Decide on a monthly payment you're comfortable with, including taxes, insurance and any HOA dues, not just the loan payment.
• Pull your free credit reports at annualcreditreport.com and dispute any errors.
• Add up savings for the down payment, closing costs and a cushion for after you move in.
• Gather recent pay stubs, W-2s or tax returns, and bank statements. Self-employed? Expect to share more history.
• Talk with a lender and get pre-approved, not just pre-qualified.
• Ask the lender which loan types you may be eligible for, and what each would mean for your down payment and monthly cost.

Choosing where to live

• Make a short list of areas, then drive each one at commute time and on a weekend evening.
• Confirm the school district for any address directly with the district.
• Note whether a home is inside or outside city limits. It changes taxes, utilities and trash service.
• Look up the property on the county appraisal district website and note each taxing unit.
• Check the FEMA flood map for the address at msc.fema.gov.

Touring homes with an East Texas eye

• Signs of foundation movement: sticking doors, cracks in brick or drywall, uneven floors.
• Drainage and grading: where does water go in a hard rain?
• Big trees: limbs over the roof, roots near the foundation or sewer line.
• Age of the roof and the HVAC system.
• Water and sewer: city service, a water supply corporation, a well or septic?
• Internet options at the address, especially outside town.

Offer to closing

• Review the contract with your agent: price, earnest money, option period, closing date and any requests.
• Schedule your inspections right away during the option period. Add termite, septic, well or foundation checks if the house needs them.
• Get homeowners insurance quotes early, and flood quotes if the map or the neighbors suggest it.
• Compare your Loan Estimate and Closing Disclosure line by line. (Here's how to read a Loan Estimate.)
• Keep your finances steady: no new credit cards, car loans or big unexplained deposits without asking your lender.
• Verify wiring instructions by phone using a number you already trust. Never use contact details from an email alone.
• Do a final walkthrough before closing.

After you get the keys

• File your homestead exemption with the appraisal district.
• Change the locks and garage codes.
• Set up utilities, trash and mail forwarding.
• Start a simple maintenance calendar: HVAC filters, gutters, pest control and a yearly look at the roof.
• Keep your closing documents somewhere safe.

The best first-time buyers aren't the ones who know everything. They're the ones who ask questions early.

If you're working through this list and want a second set of eyes on the money side, send KT a note. Happy to help you figure out where you stand.