to make sure everything matches the lending requirements. You will receive an actual loan commitment to lend to you pending the identification and approval of a specific property that you wish to purchase.
PROCESSING: A LOAN ESTIMATE
Once you have your sights set on a property and have your pre- approval letter in hand, your next step should be to obtain a Loan Estimate (LE) from the lender. This replaces the document known as the Good Faith Estimate (GFE) which was retired in 2015. A Loan Estimate (LE) is a three-page form that you will receive from the lender within three business days of applying for a mortgage. The form provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan. The LE also shows the estimated costs of property taxes and insurance, and how the interest rate and payments may change in the future. It explains which charges can change before settlement (closing) and which charges must remain the same. All lenders are required to use the same standard LE. The form uses clear language and is designed to help you better understand the terms of the loan. This makes it easier for you to compare loan features and costs.
Check These Item on Your Loan Estimate (LE)
• The spelling of your name. • The loan term, purpose, product, and loan type. • That the loan amount is what you are expecting. • Understand your monthly principal and interest. • Are there additional charges included in your payment?
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