When Will I See My Numbers? Your Loan Estimate - 6

Certified Mortgage Advisor
NMLS 1701021
Published 
November 21, 2020

Anxious about the numbers?

At this point in the process, you might be wondering what your numbers are. So when you get pre-qualified, you got a total cost analysis, and this showed you preliminary numbers based on some estimates on some homes, in a price range that you're looking at.

But now that you're under contract, those numbers are narrowed down more in the more specific, based on the numbers that you negotiated with your realtor in the purchase contract.

Loan Estimate as the map of the deal

So when will you get to see the numbers? So you're going to get a document called a Loan Estimate. This is also abbreviated as an L.E. and the loan estimate is going to be like the map of the entire deal. It's going to show you all of the details of your purchase and the loan as well. So it's going to tell you your purchase price, your loan amount, your interest rate, your monthly payment, and your total cash out of pocket. Along with all of the fees included in the deal.

A walkthrough video can be helpful

Now this can be sometimes a confusing document. So what I do is I'll actually send you a walk through video. So once you're under contract in a day or two, what I'll do is send over a loan estimate walkthrough, and I'm going to go through your loan estimate line by line and tell you everything that's happening. So you're comfortable with those numbers.

The details in your loan estimate should be very close to the details in your total cost analysis. Now, keep in mind, they might be a little different because the total cost analysis doesn't know the property that you're looking at, but the loan estimate does.

Everything is estimated

So in the loan estimate. All of the fees from all parties are being estimated. So what's happening in a real estate deal is it's not just the mortgage company who's creating the fees.

Actually, most of the time, 90% of the fees that are happening on your loan estimate, aren't being charged by the mortgage company. They're being charged by the title company, the appraiser, maybe the realtor, you have taxes, insurance, government recording fees. Everything that's happening. And a lot of these are being chosen by you. For instance, you get to pick your own homeowners insurance, you get to pick your own title company. But we have to estimate those fees upfront.

Pay attention to your monthly payment

So what you want to pay close attention to is you want to pay close attention to your monthly payment, make sure that you're comfortable with your monthly payment in page. One of your loans. It's going to show you your principal and interest, the amount that you're paying in mortgage insurance, if any, the amount that you're paying an insurance and taxes, if any, as well, that we can see that total number upfront and nothing is hidden.

Comfortable with your cash to close

Also, you want to be comfortable with your cash to close. This needs to be verified in your bank account. On your loan estimate, it's going to say cash to close. What this means is cash out of pocket due at closing. So the cash to close is the number that includes your down payment, plus all closing costs, minus any credits that you're receiving.

Enough funds in your bank account

And that money needs to be verified in your bank account. So the underwriter can give us a clear to close, and they can verify that you have the funds able to close on the purchase.

In the loan estimate, all credits are going to be calculated in there as well. So if you had earnest money that you put on the contract, that's going to be included as a credit, any seller credits, so have money that seller is giving you towards closing costs and any tax proration credit is going to be included as well. So when you get under contract shortly after, you should get the loan estimate.

Check the next step here: What To Know About Your Home Inspection - 7

Talk with a loan officer
Copyright © 2021 Win The House You Love LLC. All rights reserved.
Only for educational usage. All calculations should be verified independently. Win The House You Love LLC is not a lender, does not issue loan qualifications, and does not extend credit of any kind. This is not an offer to lend and should not be used to make decisions on home offers, purchasing decisions, nor loan selections. Not guaranteed to provide accurate results, imply lending terms, qualification amounts, nor real estate advice. Seek counsel from a licensed real estate agent, loan originator, financial planner, accountant, and/or attorney for real estate and/or financial advice. Read the full disclaimer here.