First-time homebuyers shouldn’t let themselves be daunted by their loan estimate – a document that estimates the terms, monthly payments, and closing costs associated with the mortgage for which you are applying. If you purchased a home with any lender before 2015, you may have received a so-called “good faith estimate,” which the standardized loan estimate form replaces. Click here to view a sample loan estimate from the Consumer Financial Protection Bureau.
The first page of your loan estimate (or “LE”) ought to clearly spell out the mortgage terms, including your interest rate, besides projecting your monthly payments and estimating how much cash you will need on hand in order to close your home loan. Remember to check the top right section of the page to confirm whether your interest rate is locked or not. Your interest rate is subject to change until it is locked.
The second page of the loan estimate will break down your closing costs in more detail. This will include the administrative costs associated with originating your home loan, including your credit report and appraisal. The third and final page bears the headline “Additional Information About This Loan,” and includes helpful information like late payment penalties, and your annual percentage rate (APR).
We believe in giving our customers access to the tools they need to make informed decisions about their financial future. If you are interested in calculating the loan amount you might qualify for, check our mortgage calculator tool. Then head to our Learning Center for additional resources.
Whether or not you’ve already identified the home you want to buy, a loan officer from The Federal Savings Bank can assist you in getting your own loan estimate. We also offer refinance loans, construction loans, and specialty home loans for veterans, medical professionals, and first-time homebuyers. We’re eager to provide you with a loan estimate tailored to your financial needs. Call us at +1 877-788-3520 to get started.
Subject to credit approval. Terms and conditions may apply. Subject to VA eligibility requirements. Property insurance is required on all loans secured by property.