The Loan Estimate is a three-page document that you receive within three business days of applying for a mortgage. It is often found within the Initial Disclosures.
The Loan Estimate replaced the Good Faith Estimate on Oct. 3, 2015.
This is your official offer, detailing interest rates, payments, costs, and fees for the loan. It's presented in clear language and design to help you better understand the terms of the proposed mortgage, and all lenders are required to use the same standard Loan Estimate form. This makes it easier for you to compare options so that you can choose the one that is right for you.
Fee sheets, phone quotes, and even rate tables (especially mortgage ads and fliers) mean nothing when compared to the Loan Estimate. This is your most powerful bargaining chip and the fuel for your Fincast experience!
You will need these six things to get your loan estimate from a lender:
Your full legal name
Your current income
Your Social Security number (so the lender can pull a credit report)
The property address
Estimated value of the property you are buying
The desired loan amount
Loan Terms and Rate Locks
On the second page of the Loan Estimate, you'll find a detailed breakdown of all costs and fees, all of which will be considered by Fincast.
And, there are three categories of closing costs. Some closing costs the lender can increase by any amount, some the lender can increase by up to 10 percent, and some the lender can’t increase at all.
However, with a "change in circumstances" these rules do not apply. For example, your lender is allowed to change your closing costs without restriction if:
You decided to get a different kind of loan or change the amount of your down payment
The appraisal on the home you want to buy came in higher or lower than expected
You took out a new loan or missed a payment and that has changed your credit
Your lender could not document your overtime, bonus, or other income
