You've decided on a loan program and now you're ready to complete a loan application with the help of your lender.
To speed up the application process, your lender may give you a list of documents to bring. If you already met with a lender to pre qualify, you may have provided some of this information – but you should still bring the documents again when you go back to apply for your mortgage.
Once you complete the loan application, the lender will verify all of the information you provide. Based on the requirements of your loan program, the lender may ask you for additional information.
Shortly after you apply for your loan, you’ll receive these documents from your lender:
Loan Estimate (LE)
The Loan Estimate is the lender's best estimate of your closing costs. It shows an estimate of the amount of any fees your lender may charge to process or close your loan, such as mortgage insurance, title insurance and recording fees.
The Loan Estimate also provides a summary of how your loan will be repaid and itemizes the costs associated with applying for a loan, including:
- The finance charge
- Annual percentage rate (APR)
- Number of payments you’ll make
- Amount of each payment (for fixed-rate loans)
- Late payment charges that may apply
- Total amount you’ll pay in principal and finance charges over the life of the loan
The information in the Loan Estimate Comparison section will help you to compare the cost of different loan offers. To compare the costs, you want to be sure you are comparing the same kind of loan.
The Commitment Letter is a promise from the lender to make you a loan. It includes all of the specifics of the loan as well as any conditions that must be met prior to or at the closing, and information on the loan amount, term, origination fee and interest rate.