What can change between the term sheet and closing?
The most common changes between an initial loan quote and closing are the loan amount, which can shift 5 to 15 percent if the appraisal comes in different than assumed, the rate, if it was not locked and market rates moved, and the final fee total, which is often estimated at quote stage and finalized only once title, legal, and third-party reports are complete. A quote is an estimate based on incomplete information; final terms reflect what underwriting actually confirmed.
What commonly changes and why
| Item | Why it can change | How much movement is typical |
|---|---|---|
| Loan amount | Appraisal comes in above or below the assumed value | Can shift the loan by 5 to 15 percent if the appraisal is meaningfully different |
| Rate | Not locked, or locked only for a limited window that expired | 0.125 to 0.5 point in a typical market move |
| Fees | Initial quote used estimates; actual title, legal, and report costs vary | Often 10 to 30 percent above or below the initial estimate |
| Reserves required | Underwriting finds a lower coverage ratio or credit issue | Can add 1 to 3 months of additional required reserves |
| Prepayment terms | Sometimes negotiated differently once in full underwriting | Varies |
Why quotes are estimates, not commitments
An initial quote is generated from what you told the lender: stated property value, stated rent, stated credit range. Until the appraisal, a hard credit pull, and title review are complete, the lender is working from assumptions. Any of those assumptions turning out to be optimistic will change the final terms.
The appraisal is the biggest variable
On most investor and commercial loans, the appraisal is ordered after the initial quote, not before. If your quote assumed a $500,000 value and the appraisal comes in at $460,000, the loan amount drops proportionally, and depending on the loan type, this can also change the rate tier or coverage ratio calculation.
Rate locks
Ask explicitly when your rate locks. Some lenders quote a rate that floats until closing; others lock at application or at term sheet signing for a defined window, often 30 to 60 days. If your closing runs longer than the lock window, expect a re-price or an extension fee.
Fee estimates vs actuals
Initial quotes often use round-number estimates for title, legal, and recording fees. The actual invoices, once received closer to closing, can run higher or lower depending on the specific title company, attorney, and jurisdiction.
What to do about it
- Ask what is locked (rate) versus estimated (fees, and sometimes loan amount) in your initial quote.
- Get the appraisal done early so any surprise surfaces with time to adjust plans.
- Ask for a rate lock in writing with a specific expiration date.
- Review the final closing disclosure or settlement statement against the original quote line by line before signing.
How CommFi handles it
Our lending desk flags upfront which parts of your quote are estimates versus firm, and orders the appraisal early so any adjustment surfaces with time to plan around it. It funds direct when it fits, and when the desk searches a database of 7,000+ lenders for competing quotes, each one is clearly marked for what is locked and what is still an estimate. Zero upfront fees.
Related reading
Related questions
- Why did my loan amount change between the quote and closing?
- Usually because the appraisal came in different than the value assumed at the time of the initial quote.
- Can my interest rate change before closing?
- Yes, if it was not locked, or if the lock window expired before closing. Ask specifically when your rate locks and for how long.
- Are the fees in an initial quote final?
- Often not. They are typically estimates until title, legal, and third-party report invoices are finalized closer to closing.
- How can I avoid surprises at closing?
- Get the appraisal done early, get a rate lock in writing with a specific expiration date, and review the final settlement statement against the original quote line by line.
- How much can the loan amount move if the appraisal is different?
- It can shift the loan by 5 to 15 percent or more if the appraisal is meaningfully different from the assumed value.
Property developer and licensed appraiser. 22+ years in real estate: TIC conversions, multi-unit redevelopments, mixed-use, fix and flips, commercial DSCR.