The Loan Estimate form is generally “binding” — meaning lenders have careful guidelines about meeting the estimates. Revisions of a Loan Estimate are only permitted under defined changes of circumstances. These circumstances include:
- Extraordinary events that are beyond the control of the borrower or lender
- Changes or inaccuracies uncovered in the information used by the lender in preparing the Loan Estimate
- New information identified on the borrower or the transaction
Other circumstances that might apply are:
- Interest rates were NOT locked, and applicable new rates change points or lender credits
- Settlement delay on new construction loans — typically a 60-day window
- Borrower requests loan term revisions
- Borrower waits more than 10 days after the Loan Estimate before deciding to proceed with the loan.
If these circumstances affect borrower eligibility or the value of the loan security (such as the property), or increase settlement charges beyond legal tolerance limits, a revised Loan Estimate may be issued.