The Loan Estimate (LE)

Once a Home Loan is requested, we will provide you the Estimate with important details about your loan within three days after receiving your Loan Application. The current Loan Estimate format went into effect on October 3rd, 2015.

The Loan Estimate (LE) provides you important information including estimated Interest Rate, Monthly Payment, The Total Closing Costs, Estimated Cost of Taxes, Insurance, How the Interest Rate and Payments may change in the future, whether or not there is a penalty for paying off the loan earlier (Prepayment Penalty), or if the loan balance increases over time (negative amortization). The provision about "Negative Amortization" appears in the description of the loan product.

The intent of the Loan Estimate (LE) is to help you better understand the terms of the mortgage you have applied for in a clear language while utilizing a simple design. By Law, all Lenders are required to use the same design for the Loan Estimate, so that you can make a clear comparison between the terms of the loan from multiple Lenders and to choose the best Loan that is right for you.

By receiving a Loan Estimate, there is no guarantee whether or not your Loan would be approved or you have accepted the Loan, however it shows the terms of the loan and what the lender expects to offer you if you decide to move forward with the loan.

A Loan Estimate is not provided for a Reverse Mortgage. If you applied for a Reverse Mortgage, you will receive a Good Faith Estimate (GFE) and a Truth in Lending Disclosure (TIL). For Home Equity Line of credit (HELOC), a manufactured housing loan that is not secured by Real Estate or a Loan through certain types of home buyer assistance programs, you will not receive a Good Faith Estimate (GFE) or a Loan Estimate, but rather a Truth in Lending Disclosure (TIL).

Once you provide us the following six pieces of information, we will provide you a Loan Estimate (LE).

(1) Your Name

(2) Your Income

(3) Your Social Security Number (so we can pull a credit report)

(4) The Property Address

(5) The Estimate of the value of the Property

(6) The Desired Loan Amount

We only need the above six pieces of information to provide you a Loan Estimate (LE). However if you choose, the more accurate and detailed information you provide us regarding your financial information, including debts, assets and combined Income, the more accurate your Loan Estimate (LE) is likely to be. You can also advise us regarding the type of Loan you are interested in such as:

(1) A Fixed Rate Mortgage or An Adjustable Rate Mortgage

(2) A Specific Down Payment Amount

(3) A Specific Loan Type (Conventional, FHA, VA, USDA etc)

(4) A Specific Type of Mortgage Insurance Premium "MIP" (monthly, upfront, or a combination of both)

(5) If you want to Pay Points Upfront to Lower your Mortgage

(6) Whether you want to receive lender credits to be used towards Loan Closing Costs in exchange for a Higher Interest Rate

(7) Whether you want an Escrow Account (A combined single payment that includes Homeowners Insurance, Property taxes, Principal and Interest in one combined payment or you want to pay the Home Insurance and Taxes yourself)

(8) If you want us to Lock your Interest Rate, and for what time frame

Sample Loan Estimate Page 1:

Sample Loan Etimate Page 2

Sample Loan Estimate Page 3

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