Video — The Details Of 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.