If you need assistance, please call 754-581-5077

Understanding Loan Estimates and Closing Disclosures: Why They May Not Match

Saturday, April 15, 2023   /   by Dave Magua

Understanding Loan Estimates and Closing Disclosures: Why They May Not Match

When you apply for a mortgage loan, your lender is required to provide you with a loan estimate within three business days. This document summarizes the loan terms, fees, interest rate, and monthly payments, as well as estimates for property taxes, insurance, and mortgage insurance, if applicable.

However, the loan estimate is only an estimate and may not reflect the final costs. As your loan goes through the underwriting process, the data may change, resulting in differences between the loan estimate and the final closing disclosure.

According to Rocketmortgage.com, you should receive your closing disclosure at least three days before the closing date, which is a final accounting of all your closing costs. It is important to review the closing disclosure carefully and compare it line by line with the loan estimate. If there are any discrepancies, contact your lender to understand the reasons behind the changes.

While some costs are not allowed to change, including loan origination fees and fees paid to third-party service providers, others may fluctuate, such as prepaid interest and mortgage recording fees. It is essential to understand which costs may change and which are fixed to avoid any surprises at closing.

By understanding loan estimates and closing disclosures, you can navigate the mortgage process with greater confidence and clarity.

  #real estate #south florida #luxury real estate #buy and sell #dave magua #home decor #real estate agent #luxury life #luxury homes # miami realtor #dave magua group #we sell houses #jplantation #weston island #beach front properties #real estate investor #investment property #family home #boca raton #boca #home #illustrated #real estate#compass, palm beach county, south florida, broward county, palm beach, jupiter, mortgage, jupiter farms

Keyes Illustrated Properties
Dave Magua
21065 Powerline Rd C-7
Boca Raton, FL 33433

The multiple listing information is provided by MIAMI Association of Realtors® from a copyrighted compilation of listings. The compilation of listings and each individual listingare © 2018 MIAMI Association of Realtors®. All Rights Reserved.
The information provided is for consumers’ personal, noncommercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. All properties are subject to prior sale or withdrawal. All information provided is deemed reliable but is not guaranteed accurate, and should be independently verified.
UP5DB701E1507748.jpg All listings featuring the BMLS logo are provided by BeachesMLS, Inc. This information is not verified for authenticity or accuracy and is not guaranteed. Copyright ©2024 BeachesMLS, Inc.
This site powered by CINC: www.cincpro.com