What's The Loan Estimate?
It's more important than ever to shop around, especially since the costs related to homebuying continue to increase. The Loan Estimate, introduced in October 2015, is intended to ease that process for borrowers who want to make the mortgage transaction more affordable.
The Loan Estimate is given to you within three business days of turning in a mortgage application. It outlines the various terms attached to the loan, including your interest rate, estimated monthly payments and the cash you need to close.
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"The (Consumer Financial Protection Bureau's) goal with these new disclosures, including the Loan Estimate, is to help consumers better understand the mortgage process, assist with comparison shopping and prevent surprises at the closing table," says Chris Polychron, 2015 president of the National Association of Realtors.