The Loan Estimate form addresses one of the big questions for closing: approximately how much cash will be required? Its an estimate, not a final total; heres a short list of the costs that might change, and by how much. Section A - Origination Charges should be the same amount at closing. Section B - Services that you cant shop. Closing amounts should be within 10% of the estimate. Section C - Services you CAN shop. For service providers on the list provided by the lender, the 10% tolerance limit applies. Other service providers arent bound by the estimate, but it does provide some guidance and point of negotiation for these decisions. Section E - The Recording Fees should be within 10% of the estimate. Section F, G, and H: Prepaids, Initial Escrow, and Other may vary from the estimate. Tolerance limits do not apply. These Loan Estimate figures and tolerances, plus basic loan details, Deposit Credits, Adjustments and Down Payment should serve to compute your money-on-hand requirements at closing. When assessing or comparing loans, keep these figures, ranges and tolerance limits in mind.

When an eligible mortgage proceeds to close, lenders are required to deliver a Closing Disclosure form, at least 3 business days before loan consummation. This form details the actual transaction terms and costs to be committed at closing and consummation. The Closing Disclosure must be delivered in writing (digital or paper). The details of the disclosure are specified by Federal guidelines; only the details specified by the CFPB should be included. Should transaction terms or transaction costs change prior to loan consummation, an updated Closing Disclosure should be provided by the lender. This may change the loan consummation deadline in turn, requiring an additional 3-day waiting period, in some cases. Loan closing and loan consummation are not exactly the same thing; although they may occur at the same time in some US States, they are legally distinct. Loan Consummation: borrower becomes contractually obligated to the lender (but not necessarily the seller.) Closing: all parties have committed and signed the necessary documents. The 3-business-day period applies to the gap between delivery of the Closing Disclosure, and legal loan consummation. Lenders will have more information on the specific circumstances that apply to a given transaction in a given US State.

Lenders are required to store transaction records for a number of years. The period differs based on the documents. Escrow Cancellation: 2 years Partial Payment Policy Disclosures: 2 years Loan Estimates: 3 years after loan consummation Closing Disclosures: 5 years after loan consummation If the loan is sold — for example, to a different company for loan servicing — the original lender is only required to provide a copy of the Closing Disclosure to the new owner. Both companies must retain this information, for the remainder of the 5-year period. While digital record storage is common, it is not legally required. The guidelines set for lenders under the TRID regulations do not affect consumer behavior; consumers can keep disclosure records as long as they see fit. .

Regulations and disclosures for home mortgages and most other real-estate related loans do not apply to reverse mortgages, home-equity line of credit loans (HELOCs), or mobile home loans. Disclosures for these loan types require lenders to continue use of the Good Faith Estimate, Truth-In-Lending Disclosure and the HUD-1 form. In addition, the Loan Estimate and Closing Disclosure forms used for home mortgages are not required for housing assistance loans. These have separate regulations and forms; ask your lender for regulations, declarations and explanatory material.

Laws set under the TILA- RESPA Integrated Disclosure Act - TRID - specify the details that lenders MUST supply to customers making an application for a real estate loan. Since Oct 1, 2015 loan providers are required to return two disclosures - the Loan Estimate and the Closing Disclosure. The Loan Estimate is, as the title suggests, an estimate that covers the key costs, risks and features of the proposed loan. When the lender approves a loan, the Loan Estimate must be returned to the consumer in three business days. (See related Video-Genius video on how business days are defined.) The Closing Disclosure applies if the loan process moves forward. This form covers the key costs of the loan transaction. It must be provide to the borrower a minimum of 3 business days prior to the final loan consummation.