By Nicole Shea - AUG 19, 2019
A Loan Estimate is a three-page form providing important information about the mortgage loan you’re considering.
When will you receive it?
Three business days after the lender receives the following six pieces of information: your name, income, Social Security Number, the address and value of the property you’re considering, and the loan amount you’re seeking.
Why is it important?
It provides the estimated costs associated with the loan you’ve applied for, including:
Loan amount
Interest rate
Monthly payment
Closing costs
Taxes and other costs
Basic loan information
Some lenders may provide you with an initial loan worksheet, which can be any type of document explaining your estimated rates, terms, and payments based on initial information you’ve provided. However, unless it’s an official Loan Estimate, your actual costs and rates could be higher. Remember, if your terms, rates or any other important information changes, you may also receive a revised Loan Estimate form.
While you need to include a property address on your Loan Estimate application, you don’t need a signed contract on a home. Ideally, you’d be requesting quotes from several lenders before you enter into a contract to buy a house. This should help you to be sure that you fully understand the costs and terms and that you’re choosing the loan and lender that’s right for you.
https://www.consumerfinance.gov/about-us/blog/loan-estimate-and-closing-disclosure-choose-right-home-loans/
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