which company offers the best deal for their needs.
There’s usually a length of time stated in the estimate that the buyer can use to shop and decide. After that time period is up, the loan estimate will be invalid and a new estimate will have to be obtained. The loan estimate may be provided by a mortgage broker or the lender. When a borrower obtains a loan estimate, it shows the lender that the borrower has at least some interest in working with them. However, when the borrower is given a loan estimate, loan originators are only permitted to charge for the cost of a credit report and are not permitted to charge for appraisal, inspection, or other similar settlement services.
PROCESSING: INTENT T G: INTENT TO PROCEED
When the borrower is done shopping around and has decided which lender they would like to work with, they bring the loan estimate to the lending establishment and start the next step. Working with the real estate agent and lender’s loan officer, the buyer signs all loan disclosures, the loan estimate, and signs off on an important document called the “intent to proceed.” The intent to proceed evidences that the buyer is interested in moving forward with obtaining a loan from that particular lender. It does not commit the prospective buyer to get a loan from that lender, it simply states that the buyer has signaled intent to proceed with the lender’s loan process under the terms described in the loan estimate. Think of the intent to proceed as someone raising their hand at an auction. It doesn’t mean they are going to buy, it just means they are interested in buying. It’s just that in this case, they have to sign something instead of simply raising their hand.
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