Details Required In Your Mortgage Loan Estimate

Lenders supply a Loan Estimate form for valid mortgage applications. This form documents these essential elements of the approved loan:

  • Services borrowers CAN shop in relation to the loan
  • Services borrowers CANNOT shop
  • Loan terms
  • Loan costs
  • Project payments
  • Cash and costs required to close the loan
  • A loan summary to aid comparing this estimate to other estimates.

Loan Estimate forms also provide details about loan assumption policies, appraisal, insurance, late-payment policies, and refinancing. The Estimate should also disclose whether the lender intends to service the loan directly.

All Loan Estimates are not identical. Information that is NOT related to a specific application may be excluded. Careful reading and comparison is always a good practice.

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