When important information changes, your lender is required to give you a new Loan Estimate that shows your new loan offer.

It is illegal for a lender to quote you low fees and costs for its services on your Loan Estimate and then surprise you with much higher costs in a revised Loan Estimate or Closing Disclosure. However, a lender may change the fees it quotes you for its services if the facts on your application were wrong or changed, you asked for a change, your lender found you did not qualify for the original loan offer, or your Loan Estimate expired.

Here are common reasons why your Loan Estimate might change:

  • You decided to change loan programs or the amount of your down payment.
  • The appraisal on the home you want to buy came in higher or lower than expected.
  • You took out a new loan or missed a payment and that has changed your credit.
  • Your lender could not document your overtime, bonus, or other income.

If your Loan Estimate is revised you should look it over to see what changed. Ask your lender:

  1. “ Can you explain why I received a new Loan Estimate?”
  2. “ How is my loan transaction different from what I was originally expecting?”
  3. “ How does this change my loan amount, interest rate, monthly payment cash to close, and other loan features?”

CosmoLends are experts in home loan products including FHA, VA, Conventional, USDA and OHFA, as well as purchase rehabilitation loans such as the FHA 203(k) and HomeStyle Renovation products. Call us and speak to one of our mortgage coaches to find out how we can help. You can also call us at 216.387.1003 and speak with a member of our loan team for a FREE consultation.

Published from Your home loan toolkit – A step-by-step guide by Consumer Financial Protection Bureau