CategoriesTips & News
What should I look for?
You’ve picked your property; the Seller has accepted your offer… now the lender wants you to sign documents quickly. Here is the breakdown of the difference between a Loan Estimate vs a Closing Disclosure.
This is provided within 3 business days after the lender has received your accepted offer. This document must be esigned within 48 hours of acceptance and appraisal cannot be ordered until it is signed.
What does it provide?
- Loan Amount
- Interest Rate
- Monthly payment
- Closing Costs
- Taxes and other costs
- Basic loan information
What’s important?
- A loan estimate isn’t an indication that your loan application has been approved or denied.
- You’re not obligated to pay an application fee
- An interest rate on your Loan Estimate is not a guarantee. Some lenders may lock your rate as part of issuing a Loan Estimate, but others may not.
- If you choose to move forward with the loan and lender, you must convey your intent to proceed.
What does it provide?
- Loan amount
- Interest rate
- Monthly payment
- Closing costs
- Estimated taxes, insurance, and other costs
- Summary of transactions
- Additional information about your loan
What’s important?
- Compare your closing disclosure with your most recent Loan Estimate to ensure the terms and costs are what you expected.
- You have this 3-day window to thoroughly review your loan information and ask any final question of your lender
- It’s possible some of your costs may still change at Escrow.
- If you find an error, contact your lender to have it corrected.