Published by Brasch Financial.
Start with the full monthly payment
Principal and interest are only part of housing costs. Review estimated taxes, insurance, and any mortgage insurance. Ask which expenses are included in the payment and which you will pay separately. Include any homeowners association dues in your own budget.
Separate closing costs from cash to close
Closing costs are charges associated with the loan and transaction. Cash to close also accounts for your down payment, deposits already paid, and applicable credits. Review both figures so you know how much money you will need.
Compare lender fees and credits
A lower advertised rate may come with upfront points. Lender credits may reduce what you pay at closing in exchange for a higher rate. Ask for an explanation of each option and compare costs over the time you expect to keep the mortgage.
Does “no lender fees” mean no closing costs?
No. Lender charges are only one category. An offer may still include appraisal, title, recording, prepaid interest, insurance, or escrow costs. Compare the complete estimate and ask who pays each charge. A lender credit can offset upfront costs, but may come with a higher rate.
Check what can change
Look at the loan term and whether the rate is fixed or adjustable. Check whether the rate is locked and when the lock expires. Estimates prepared on different days may reflect different market conditions.
Bring the differences to your loan originator
If two offers look different, ask why. A useful conversation covers what you will pay now, what you will pay each month, and what could change later.
For your next step, read the home-purchase guide or refinance cost checklist. For a home equity line of credit (HELOC) or reverse mortgage, ask for the disclosures that apply to that product; those loans do not use the standard Loan Estimate form.
For a line-by-line explanation, use the Consumer Financial Protection Bureau’s official Loan Estimate guide. You can also contact Eric or read the mortgage FAQ.
Educational information only; not an offer, approval, or personalized financial advice. Loan terms depend on your application, property, lender, and program.