What Is A Loan Estimate?

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What Is A Loan Estimate?
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• If you choose to work with a qualified mortgage
  broker in your locality, they will help talk you
  through your loan estimate, a 3-page document
  outlining the most important details of your
  loan, and help you to understand what the lender
  expects from you if you choose to proceed.

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• Loan estimates in a little more detail
• Once youve submitted your loan application,
  within 3 days youll receive your loan estimate,
  and it will contain details about the loan
  amount, interest rate, monthly payment and
  closing costs. Whatever lender you choose to
  apply for a mortgage with, the loan estimate will
  be set out the same, as is required by law. This
  makes it much easier to compare offers side by
  side, and while it isnt an acceptance to fund
  your loan or guarantee a rate or other factors,
  it gives you a good idea of what the lender is
  expecting you to provide them with. When you
  receive your loan estimate, its only valid and
  binding for 10 days.

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• Mortgage phrases to be familiar with
• When you receive your loan estimate, it may
  contain words and phrases that youre not
  familiar with, and while your mortgage broker can
  help explain them for you, it can be helpful to
  have a general idea of their meaning
• Escrow
• Used by your mortgage lender to hold onto your
  homeowners insurance and property tax payments,
  an escrow account enables the lender to pay for
  them every month so you dont have to. However,
  you can opt to waive escrow if you prefer to take
  care of your insurance and taxes yourself.

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• Prepaids
• The amount of interest owed between the date you
  close and your first mortgage payment, along with
  insurance premiums and property taxes, can be
  placed into escrow until they need to be paid,
  hence the term prepaid.
• Points
• By paying an amount of money upfront in the form
  of points, you can buy a lower rate of interest
  on your loan, with every point costing around 1
  of the total loan amount reducing the interest
  rate by approximately 0.25.

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• Assumption
• Should you decide to sell or transfer the
  property to someone else, that person may be
  permitted by the lender to take over (or assume)
  your loan, instead of requesting that they get a
  new one.
• Servicing
• Once the loan has closed, the majority of lenders
  will sell or transfer the loan to a mortgage
  servicer who will begin collecting your payments.

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• How accurate are loan estimates?
• Because a loan estimate is just an overview of
  what the lender expects to offer if you choose to
  move forward with the loan, you can expect some
  other expenses such as closing costs, to be
  updated before you close. Your interest rate may
  also not necessarily be the same one that you
  get, unless you chose to lock it in with your
  lender, which may be a wise choice, as rates can
  vary a lot, and often.
• However, a loan estimate is certainly a useful
  tool for comparing offers.
• To make the entire mortgage process as simple,
  quick and stress-free as possible, work with a
  mortgage broker from the outset.

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• Mortgage-broker-Calgary is your best resource for
  finding a mortgage for your property. Luke Wile,
  is one of the best Calgary mortgage brokers and
  is proud to serve clients from across Canada,
  while being centered in Calgary, Alberta. Luke is
  proud to serve his clients with a personalized
  approach to finding his clients the best and
  lowest Canadian interest rates and terms offered
  by the major banks and private lending
  institutions. If you are looking for a mortgage
  broker in Calgary AB, with Luke Wile you can get
  fast and personal expertise for your mortgage!