13 Things Houston First Time Home Buyers Will Find On Their Loan Estimate

Hello and welcome to Houston First Time Home Buyers Edition, formally First Home Houston (FHH), where we provide useful information to help Houston first time home buyers make the most informed decision when it comes to buying, decorating, and maintaining their first home.

The loan estimate is a 3-page document that must be provided to first time home buyers by the loan officer, within 3 business days of receiving your loan application.

In order for the loan officer to provide you with a loan estimate, they must first receive your name, address, social security number, your income, loan amount and the cost of the home you are considering.

Once you receive your loan estimate, your signature will be required to confirm receipt.

The Loan estimate is important because it provides the estimated cost that will be associated with the loan you applied for. The information provided in the loan estimate includes, but not limited to:

•  Interest rate.

• Loan amount.

• Loan cost.

• Property taxes estimate.

• Insurance estimate.

• Estimated monthly payment.

• Services you can shop for.

• Services you cannot shop for.

• Initial Escrow payment.

• Estimated cash to close.

• Down payment amount

• Estimated closing cost.

The loan estimate does not impact the approval or denial of your loan.  It is very important that you keep in mind that these figures are estimate and not final. A tip from the Consumer Financial Protection, always check to make sure the loan amount and your name are correct.

Also, please keep in mind, that once you receive the loan estimate, at this point your loan is not yet approved or denied, so if you do not like what you are seeing, you are not locked into anything.

 In addition, you can always call your loan officer and have him or her explain anything that you may not understand or need clarity on. Your Realtor is also an excellent source of information.

Make sure you speak with your Realtor about any concerns and questions you may have during your home buying process. As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana

Source + Image: Consumer Financial Protection Bureau