What is a Loan Estimate?
The Loan Estimate is a three page form that you receive after applying for a mortgage. It is the nuts and bolts to the mortgage.
Are rates and costs really that different?
Some banks and lenders have a lot of bloat: a lot of people to pay, and just as much in advertising. That bloat shows up on your Loan Estimate. It's not the loan officer's fault either, it's just the company.
Are you going to bombard me with calls and spam?
Nope, we don't even ask for your phone number. We send the report card, and if there is savings to be had, the email will tell you the dollar amount, and then you may schedule a call with us. The ball is in your court.
What should I do if I get a bad grade?
You go to the principal's office. If you get a bad grade you should schedule a call. In the call we'll discuss your situation and deadlines and see if there's anything that can be done. You should include your agent in the call.
What should I do if I get a good grade?
Kick back and carry on.
What goes into your analysis?
In your Loan Estimate review we scan your interest rate on page one. Then we scan sections A, B, and J on page two.
In section A you'll be charged origination fees, discount points, underwriting fees, application fees, and processing fees. These are fees the lender has control over.
Section B has paperwork fees: Credit report, registration fees, flood certification fees. Sometimes lenders can waive those fees for you.
Section J may have a lender credit to offset fees.