A customer wants an estimate of closing costs for the purchase of a $300,000 property...

Regulation Z allows creditors to provide a written estimate of costs before a Loan Estimate is triggered, provided the estimate clearly states that the figures are not binding and are not the official Loan Estimate. The required statement is:

“Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.”

“If a creditor provides a written estimate of terms or costs before providing the Loan Estimate, the creditor must clearly and conspicuously state at the top of the first page, in 12-point font, ‘Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.’”

— 12 CFR § 1026.19(e)(2)(ii), Regulation Z