12 Things Houston First Time Home Buyers Will Find On Their loan estimate
What is a loan Estimate?
The loan estimate is a 3-page document that must be provided to you by the loan officer, within 3 business days of receiving your loan application.
In order for the loan officer to provide you with a loan estimate, they must first receive your name, address, social security number, your income, loan amount and the cost of the home you are considering.
Once you receive your loan estimate, your signature will be required to confirm receipt.
The Loan estimate is important because it provides the estimated cost that will be associated with the loan you applied for. The information provided in the loan estimate includes, but not limited to:
Interest rate.
Loan amount.
Loan cost.
Property taxes estimate.
Insurance estimate.
Estimated monthly payment.
Services you can shop for.
Services you cannot shop for.
Initial Escrow payment.
Estimated cash to close.
Estimated closing cost.
The loan estimate does not impact the approval or denial of your loan. It is very important that you keep in mind that these figures are estimate and not final. A tip from the Consumer Financial Protection, always check to make sure the loan amount and your name are correct.
Also, please keep in mind, that once you receive the loan estimate, at this point your loan is not yet approved or denied, so if you do not like what you are seeing, you are not locked into anything.
In addition, you can always call your loan officer and have him or her explain anything that you may not understand or need clarity on. Your Realtor is also an excellent source of information.
Always make sure you speak with your Realtor about any concerns and questions you may have during your home buying process. We at First Home Houston is always looking out for your best real estate interest. As always, we thank you for stopping by. Until next time… Diana.
Source + Image: Consumer Financial Protection Bureau
