How to Read Your Mortgage Documents. What First Time Home Buyers Need to Know About Their Loan!

Today’s Money Tip is answering a frequently asked question on the difference between your loan estimate and your closing disclosure.

These two documents provide you with important loan information and details, such as closing costs, interest rate, monthly payment and cash to close. These documents will also detail special loan features and penalties (if applicable).

Its super important to know how to read these moving through your loan process, so that you are aware of any changes.

Couple of things to keep in mind!

1. Your loan estimate needs to be sent out within three days of your purchase contract which can make it difficult due to timing restrictions to get accurate Title, HOA and Insurance fees. Your initial estimate is usually just our best estimation of the costs.

2. You will likely receive more than one loan estimate before we issue your closing disclosure. This is because we like to keep you updated on loan changes such as “locking” in your rate, or when we have updated costs.

3. Your loan terms can be changed even if a loan estimate is sent out. So if you decide to put more/less money down, buy-out your mortgage insurance or buy-down your rate, you can do so up until we send out your closing disclosure.

4. If you notice a correction that needs to be made on your loan disclosures, do not panic. There are several people from your title agent to your loan processor to your loan funder who are involved in the balancing of your loan figures. Mistakes are not common, but they are human. If there is a correction that needs to be made there is a three day resolution period where we can work out any changes. Please call, email or text the issue and I promise our team will jump right on resolving this.

5. If you want to make loan term changes after your closing disclosure is sent you can still do so, but it may extend your close of escrow. This is because changes to loan terms can result in an increase in fees, rate, and APR. Increases will more than likely result in another three day waiting period.

As always, my goal is to help you with practical finance tips so that you make a smart home purchase! I hope you find this video informative and helpful! If you have any questions, please know that I am here for you and happy to answer anything!

Make it an awesome week!
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Видео How to Read Your Mortgage Documents. What First Time Home Buyers Need to Know About Their Loan! канала Lizy Hoeffer