CFPB Support

HELPFUL RESOURCES

The Consumer Financial Protection Bureau (CFPB) offers various resources and tools, including a “roadmap” to help homeowners navigate the homebuying journey. Download the roadmap and "Buying a House" resource to learn more about key milestones and steps for success offered by the CFPB.

Standard Documents

Every buyer receives two, standardized documents during the mortgage process: the loan estimate and the closing disclosure.

Loan Estimate

A loan estimate is requested by a homebuyer of a lender(s) at the beginning of the home loan process. To prepare the estimate, buyers must provide lenders the following information:

• Buyer’s name
• Buyer’s income
• Buyer’s social security number
• The property address for which the loan is required
• The value of the property for which the loan is required (the listing price)
• The desired loan amount

Within three days of the lender receiving the above information, the lender will provide the buyer with a loan estimate. The estimate outlines the key features of the loan, including any fees a buyer will incur obtaining the loan. The loan estimate provides the following information:

• Loan amount
• Interest rate
• Monthly payment
• Closing costs
• Taxes and other costs
• Basic loan information

A buyer may request a loan estimate from multiple lenders in order to compare a mortgage product offered by multiple lenders. Make certain the same kind of loan with the same feature is requested of each lender so that a true comparison can be made.

Important to Note:

• A loan estimate isn’t an indication that your loan application has been approved or denied.
• It’s not necessary to have a signed contract on a property in order to request a loan estimate.
• There is no application fee associated with a loan estimate. The only expense associated with a loan estimate is a reasonable fee the lender may charge the applicant to run his/her credit report.
• If your interest rate or loan details change, you may receive a revised loan estimate.
• The loan estimate is not a guarantee. This includes the interest rate listed on the loan estimate. Some lenders may lock a rate as part of issuing a loan estimate, but others may not.

• It is a buyer’s responsibility to inform a lender of his/her intent to proceed with the loan and lender.

The CFPB offers buyers a loan estimate explainer to help better understand and double-check important details within a loan estimate.

Closing Disclosure

Within three business days of the scheduled closing date, a buyer will receive the closing disclosure. The closing disclosure provides a buyer with the actual costs of a mortgage loan. The closing disclosure provides the following information:

• Loan amount
• Interest rate
• Monthly payment
• Closing costs
• Estimated taxes, insurance and other costs
• Summaries of transactions
• Additional information about the loan

Important to Note:

• Compare the closing disclosure with the most recent loan estimate to ensure the terms and costs are as expected.
• Buyers have a 3-day window to thoroughly review the loan information and ask any final questions of the lender.
• It’s possible that some costs may change.
• If an error is noted, contact the lender or settlement agent immediately to have it corrected.
• Ask the lender or closing agent to also provide the additional closing documents, including the promissory note and mortgage or security instrument in order to review them before closing/signing.

The CFPB offers buyers a closing disclosure explainer and a mortgage closing checklist to help better understand and prepare for closing.

All information, including links, is credited to https://www.consumerfinance.gov/about-us/blog/loan-estimate-and-closing-disclosure-choose-right-home-loans/