What is needed for a loan estimate?
The lender must provide you a Loan Estimate within three business days of receiving your application. The Loan Estimate is a form that took effect on Oct. 3, 2015. The form provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan.
Is a loan estimate the same as a pre approval?
A pre-approval says that you’re a good candidate for a mortgage. You’re likely to be approved for the loan as long as the information you provide is accurate. A Loan Estimate, on the other hand, doesn’t come until “after” you’ve found a property.
What type of information is needed to apply for a loan?
Loan application
This initial application is usually basic — it will often ask for your personal information, such as your name, address, phone number, date of birth, and Social Security number. It might also require you to state your desired loan amount and loan purpose.
Is a lender required to provide a loan estimate?
The lender must provide you a Loan Estimate within three business days of receiving your application. The Loan Estimate is a form that took effect on Oct. 3, 2015. The form provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan.
Is a loan estimate an approval?
A Loan Estimate isn’t an indication that your loan application has been approved or denied. You don’t need to have a signed contract for the property that you’re receiving a Loan Estimate for. You’re not obligated to pay an application fee other than a reasonable fee for the lender to run a credit report.
What document itemizes closing costs?
A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).
What forms are combined to create the loan estimate?
The Loan Estimate and the Closing Disclosure are two new forms that combine the traditional Good Faith Estimate, Truth in Lending disclosure and HUD-1 Settlement Statement that are required by federal law.