In the next 24 to 48 hours:
You will receive an important email from our corporate compliance department. This email will contain your loan package, which includes a set of documents that need to be reviewed and signed.
Please note that this communication will not come directly from me or anyone on my team, but from the corporate office, which is standard procedure.
Loan Estimate (LE)
Within this package, you will find a document called the Loan Estimate (LE). The LE is designed to give you an overview of the loan, including details such as the rate, payment, and costs associated with your mortgage.
However, it is important to understand that the Loan Estimate may not be as accurate as the information you’ve already received from my team.
We have already provided you with a more detailed document called the Loan Summary Worksheet. This worksheet breaks down the cost structure, payment, rate, and other key details of your mortgage. I consider this to be the “mortgage bible” for your loan.
If you ever have questions about the rate, cost, or payment, the Loan Summary Worksheet is what we will use as the reference point.
The reason for the potential discrepancy between the Loan Estimate and the Loan Summary Worksheet :
This due to state-specific regulations and compliance requirements. The Loan Estimate often reflects more conservative or rounded-up numbers. This is done to ensure that there are no surprises later in the process, and to prevent any accusations of “bait and switch” tactics.
For example, if we estimate a fee, we will always round up, and in some cases, we may overestimate to be on the safe side.
There could be as many as 15 different vendors involved in the final closing disclosure, including the title company, appraiser, credit report agency, tax certification, and flood certification, among others. Since these fees can vary, we aim to be conservative in our estimates.
However, the compliance department may take an even more conservative approach, leading to overestimated fees that may not apply to your loan.
Even if certain fees have been discussed as being waived or unnecessary, the compliance department may still include them in the Loan Estimate. This is done to ensure proper disclosure in case anything changes during the loan process.
Despite this, always refer back to the Loan Summary Worksheet that my team has provided, as it is the most accurate reflection of your loan’s terms.
As we move through the process, details like property taxes, insurance, and title fees will be updated. If any significant changes occur, we will send you an updated Loan Summary Worksheet. This updated document will reflect any changes to the loan amount or other terms. The closer we get to closing, the more accurate these numbers will become.
Just before closing
You will receive the final Closing Disclosure (CD). The CD is the definitive, down-to-the-penny document that shows the exact terms of your loan. My team will compare the most recent Loan Summary Worksheet with the Closing Disclosure to ensure consistency and accuracy. Please understand that the Loan Estimate is not set in stone. It may differ from the final numbers, but we are always here to provide you with the most accurate information possible.
If you have any questions about the loan package or the disclosures, feel free to reach out. My team and I are committed to giving you transparent, reliable information throughout this process.
Thank you for trusting us with your mortgage, and don’t hesitate to contact us with any questions.