Understanding Your Loan Estimate: Services You Cannot Shop For

  These costs are paid to outside parties, not the lender, but you don’t get to choose them. They may include: appraisal, which puts a value on your property on the lender’s behalf a credit report on you fees to assess flood risk of your property, or for ongoing monitoring of flood zone changes related […]

Understanding Your Loan Estimate: Page 2, Loan Costs

  Closing costs are fees paid when the title of the property is transferred to the buyer making them the legal owner. Origination Charges are fees collected by the lender for the loan process. They may including fees for handling the loan application and “Origination Fees”, which are compensation paid by the creditor to the […]

Understanding Your Loan Estimate: Terms, Payments and Closing Costs

  The first page of your Loan Disclosure shows the Loan Terms Projected Payments and Costs at Closing. The Loan Amount, of course is the total you are borrowing. But the Interest Rate alone doesn’t represent all of your borrowing costs. The APR figure on Page 3 shows that. Likewise, Monthly Principal & Interest aren’t […]

Can My Settlement Charges Change?

  Yes, if circumstances change, such as: a natural disaster damages the property or affects closing costs the title insurer providing the estimate goes out of business during underwriting new information on you or the transaction affecting settlement is discovered. If any of these events change 3rd-party charges beyond the 10% tolerance limit creditors may […]

Can Creditors Revise TRID Loan Estimates?

  Creditors are generally bound by the initial Loan Estimate. They are permitted to provide a revised Loan Estimate only under certain changed circumstances. These include circumstances that: a) increase settlement charges beyond the legal tolerance limits b) affect YOUR eligibility or change the value of the loan security. Also, c) if the interest rate […]

What’s Refunded If My Loan Is Higher Than My Estimate?

  If the amount you pay at closing exceeds the amounts disclosed on the Loan Estimate – beyond tolerance limits for each category – the creditor must REFUND the excess to you no later than 60 calendar days after loan consummation. For charges subject to a 10% cumulative tolerance fees greater than 10% of the […]

Could My Loan Costs Exceed The Loan Estimate?

  Yes, within defined limits. Service charges for which YOU shop and select a provider may change; the creditor is NOT responsible for providers who are NOT on their written list. In addition, prepaid interest, property insurance premiums and escrow or reserve deposits may change without legal tolerance limits. Charges for recording services, and 3rd-party […]

What Will The TRID Loan Estimate Tell Me?

  The Loan Estimate documents the essential facts and terms of an approved real estate loan. It includes: loan terms projected payments and loan costs cash and costs at closing time the services for which you CAN and CANNOT shop in relation to the loan summary information with which to compare this loan to others […]

How Long Must Creditors Keep Real Estate Loan Records?

  Under the TRID rule, creditors must retain Escrow Cancellation and Partial Payment Policy disclosures for two years; Loan Estimate records for three years after loan consummation and Closing Disclosures for FIVE years. If a creditor sells or transfers their interest they must provide a copy of the Closing Disclosure to the new owner or […]

What Is A ‘Business Day’ For Real Estate Loan Disclosures?

  “Business day” is defined slightly differently for Loan Estimates and Closing Disclosures. For Loan Estimates, each day on which a creditor’s offices are open to the public count as a business day. Loan estimates must be delivered or placed in the mail no later than the 3rd business day after receiving your loan application. […]

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