SAN ANTONIO – Comparing loan estimates is essential in the home buying process to make sure you get the deal that fits your needs.
The Consumer Financial Protection Bureau has some tips to help you compare offers.
First, request loan estimates from the multiple lenders you are considering. The estimate is a simple way to see which lender is offering you the best deal.
You will need the following information to begin your loan application: your name, income, Social Security number, the address of the home you want to buy and the loan amount.
The CFPB says home buyers should ask each lender for the same kind of loan with the same features. You should consider the following when requesting loan information: loan type, interest rate type, loan term, down payment and loan amounts, lender credits and rate-lock period.
The next step is to review your loan estimates to choose what works for you. Read each estimate carefully and check to see if your interest rate is locked. If it's not locked, your rate can change at any time.
After reviewing your offers, compare the details of your loan estimates and how they stack up against one another.
The CFPB reminds home buyers that loan estimates are not set in stone. If your offers don’t fit your needs or are different than what you asked for, you can go back to your preferred lenders and ask for different options. If you feel most comfortable with a certain lender, but another has a better offer, you can go back with the preferred company and try to negotiate your estimate.
Once you have compared loan offers, you can make your choice and notify the lender. The CFPB says it’s a good idea to run through the key terms with the loan officer to confirm everything is in order before moving forward with the loan.
Your next step is to submit your documentation to process your loan application with the lender and continue with the closing.
For more information from the Consumer Financial Protection Bureau on comparing loan offers, click here.
Next week on the News at 9, KSAT will bring you the fourth part of this four-part “Money: It’s Personal” series on home buying in which we will explain the closing process.
WATCH ALL PARTS OF THE “MONEY: IT’S PERSONAL” HOME BUYING SERIES BELOW:
Part 1: What to do before you make an offer on a home
Part 2: Tips on exploring mortgage loans to purchase a new home
Part 3: How to compare mortgage loan offers
Part 4: Tips for navigating the closing process when buying a new home