Loan Estimate and Closing Disclosure: Your guides in choosing the right home loan

By Nicole Shea - AUG 19, 2019

If you’re in the process of buying a home for the first time, you want to make all of the right decisions, from choosing the perfect home to finding a reliable closing agent. You’ll face a number of important decisions – and the more you know about the mortgage process, the more prepared you will be to make those decisions. When it comes to making an informed decision about the right home loan, there are two standardized documents you’ll receive in the process to help you to understand the loan that you are applying for: the Loan Estimate and the Closing Disclosure.

When shopping for a home loan, getting a Loan Estimate for each loan you apply for helps you compare the costs and terms of one loan to another. To get the best comparison, ask at least three lenders for a Loan Estimate based on the same kind of loan terms. You’ll need only six pieces of information to get started.

Later, after you’ve expressed your interest in moving forward with one of these loan choices (and your application has been processed and approved), you’ll also receive a Closing Disclosure, which provides the most accurate picture of the costs and terms of the home mortgage loan you’re about to commit to.

https://www.consumerfinance.gov/about-us/blog/loan-estimate-and-closing-disclosure-choose-right-home-loans/