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!

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However, the loan amount is different from the purchase price. The loan amount will be a smaller number than the purchase price.

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Secondly, the interest rate is the percent you are charged for borrowing money for the property.

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Thirdly, this number will be an estimate of what your total monthly payment could be.

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Fourthly, this number will show the estimate of your total taxes, insurance & assessment payment could be.

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Fifthly, this number will show the estimated amount of money required to complete the transaction of buying property.

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!
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First, the charges shown are associated with establishing the account for your loan.

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Second, these costs can not change and are paid to outside parties.

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Thrid, these are costs you can shop around for.

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Forth, you pay this insurance yearly to keep your insurance policy active.

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Fifth, this will show how much taxes you will pay on your property.

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Six, lender credit is optional. A lender can help cover some of the mortgage-related closing costs.

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.
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First, you will find our information in this section.

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Second, these comparisons will show you valuable calculations for your loan.

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Third, make sure you know when and how to pay your monthly mortgage payment to avoid any late fees.

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

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