What is a Loan Estimate?
Simply put, the Loan Estimate (or LE) is a document intended to make it easy for borrowers to compare loan offers from multiple lenders. A Loan Estimate is a standardized form you receive from your lender outlining the specifics of the mortgage option they have quoted you. A Loan Estimate contains information such as:
- How much you’re borrowing and your monthly payments
- The total cost of taking out your mortgage
- If you have a fixed-rate or adjustable-rate loan
- How much money you need to bring to the loan closing
How Does it Work?
The Compare My Rate™ tool from eLEND makes it easy to compare several loans. Simply upload the form (or take a photo using your mobile device) and see a comparison based on the cost of the loan over five years, the principal paid over five years, the annual percentage rate, total interest percentage, and total loan costs.
The advanced technology in our Compare My Rate™ tool reads the information off of your current Loan Estimate and feeds it into our eLEND pricing engine. See whether switching to eLEND can help save you money on your mortgage.
Get A Loan Estimate
A Loan Estimate is a 3-page document that summarizes the details of a loan offer made by the lender. Reach out to a few different lenders and see what terms they’re offering. Don’t have a Loan Estimate yet? Get one here
Uploading a Loan Estimate is a breeze. Simply take a picture of your LE or upload the PDF file to the Compare My Rate™ tool. The OCR technology allows the Compare My Rate™ tool to scan and analyze all of the comparison points on the document.
Once you have successfully uploaded your documents, the Compare My Rate™ tool will show a comparison based on the cost of the loan over five years, the principal paid over five years, the annual percentage rate, total interest percentage, and total loan costs.
Comparing mortgages is one of the smartest things you can do when looking to purchase a home.
We all want to be informed consumers making smart decisions about how to spend our hard earned money. But when buying something we don’t fully understand it’s all too easy to take the first offer and run, moving quickly back into the sphere where we feel more at ease. Shopping around for a mortgage however, will likely result in a better experience, and lead to greater satisfaction following closing. Here are a few reasons why:
When you compare loan estimates from three or four lenders you are likely to find that not all mortgage pricing is the same.
Receiving a rate that is half a percent lower can result in significant savings, both in your monthly mortgage payment but even more so in the amount of interest paid over time.
Get The Best Deal
Research from the Consumer Financial Protection Bureau (CFPB) revealed that 30 year fixed rate conventional loan rates quoted by various lenders “could vary by more than half a percent.”
Be More Informed
Just a handful of conversations about your new home loan will probably help you more thoroughly understand the aspects of home financing, set your expectations, and even familiarize you with the terms you’ll be encountering from application through closing.
Once you gather the information needed for a first mortgage quote you’ve got everything you need to shop around a bit more. Make a few additional phone calls and arm yourself with the information needed to make an informed decision you’ll feel good about.
Need to Speak with Someone?
Don’t have a loan estimate to compare? Contact one of our loan officers to get started. Our simplified process and knowledgeable team will walk you through the process and make your purchase as simple and stress-free as possible. And best of all, you can speak to them when it’s convenient for you.