04/08/2016 | Author: Editorial Staff
The homebuying process contains many moving parts and lots of paperwork. It’s hard to keep up with all the decisions and demands on your time. But when you start applying for a mortgage, there are two documents that you should pay special attention to: the Loan Estimate and Closing Disclosure.
The Loan Estimate
This is a three-page document that you’ll receive from your lender no more than three business days after receiving your loan application. It provides important details about the loan you’re trying to get, such as the estimated interest rate, monthly payment, and total closing costs for the loan. The Loan Estimate also tells you about the estimated costs of taxes and insurance, and how the interest rate and payments may change in the future.
At this point, you haven’t been approved for anything. It’s just a summary of what you’ve applied for and how much it’s going to cost. Once you have been approved for the mortgage loan, you can look forward to receiving the next important document.
The Closing Disclosure
This five-page form provides final details about your loan. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage. You’ll get the Closing Disclosure at least three days before closing on your mortgage loan. Use this time to review the terms and costs and make sure they are correct.
For guidance on these documents and others related to the homebuying process, talk to your REALTOR® and mortgage lender.
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