Loan Estimate Explainer

Loan estimates can be a nightmare to read!

Loan estimates are the form you receive after applying for a mortgage. As a result, it tells you the crucial details about your mortgage loan. You will receive this three-page form no more than three days as long as you have fully completed your mortgage application. You can apply for a mortgage right now here on our secure portal to get your loan estimate. After you are done you can check out our closing disclosure explainer. If you are a first-time home buyer or want a refresher check out Fannie Mae’s first-time home buyers class NOW!

Check out our breakdown of the loan estimate explainer sample form right now. Lastly, reach out to us if you have any more questions about your loan. We love helping our community!

Page 1 Page 2 Page 3

Loan Estimate Explainer of Page 1

1. Loan Amount

However, the loan amount is different from the purchase price. The loan amount is the amount of money you are borrowing to buy the property.

2. Interest Rate

Interest rate is the percent you are charged for borrowing money for the property.

3. Estimated Total Monthly Payment

The number shown is not final. However, it will just estimate what your total monthly payment could be.

4. Estimated Taxes, Insurance & Assessments

This number is not absolute. However, it will just estimate your total taxes, insurance & assessment payment could be.

5. Estimated Cash to Close

This number is not final. However, this is the estimated amount of money required to complete the transaction of buying property. Check out this cash-to-close video now!

Loan Estimate Explainer of Page 2

1. Origination charges

These are charges associated with establishing the account for your loan.

2. Services you cannot shop for

These are costs you pay to outside government parties. Therefore, they can not change.

3. Services you can shop for

These are costs you pay to outside parties, but you can shop around for the best deal.

4. Homeowner’s insurance premium

This insurance is paid yearly to keep your insurance policy active.

5. Property taxes

This is how much taxes you will pay on your property.

6. Lender credit

Lender credit is optional. Therefore a lender can help cover some of the mortgage-related closing costs.

Loan Estimate Explainer of Page 3

1. Loan officer

This section will show your loan officer’s information.

2. Comparisons

These comparisons will illustrate practical calculations for your loan.

3. Late payment

Ensure you know when and how to pay your monthly mortgage payment; otherwise, you will have late fees.

Scroll through all three pages to better understand your individualized loan estimate. The images and definitions above can only be used as a guide and do not reflect actual numbers. Additionally, each loan estimate page will have unique numbers to reflect your individual mortgage. However, the content on this page is not to be used as legal advice. Each number on the loan estimate image correlates to the same number on the right-hand side of the screen with an excellent explanation of that highlighted section.

Lastly, if you have any questions after going through our loan estimate explainer or at any other time, please reach out to us by phone or email. Primarily we are always here to help you succeed!

Phone: 984-999-7799

Email: Christina.Jasper@Benchmark.us

Check out our video library to learn more about elements of the mortgage process NOW!

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Ark-La-Tex Financial Services, LLC d/b/a Benchmark Mortgage 5160 Tennyson Pkwy STE 1000, Plano, TX 75024. NMLS ID #2143 (www.nmlsconsumeraccess.org) 972-398-7676. This advertisement is for general information purposes only. Some products may not be available in all licensed locations. Information, rates, and pricing are subject to change without prior notice at the sole discretion of Ark-La-Tex Financial Services, LLC. All loan programs subject to borrowers meeting appropriate underwriting conditions. This is not a commitment to lend. Other restrictions may apply. (https://benchmark.us)