Texas Trust’s mission is to build the trust of its customers by providing excellent service. We enjoy a competitive advantage by providing unmatched customer service. One of the secrets of our success is providing an accurate Loan Estimate (LE) to our customers. You may be aware that Texas Trust Home Loans offers a range of loans that suit our customers with different needs and financial requirements. We use the LE to provide a brief and clear summary of the terms and conditions of your loan. Our LE also portrays the costs associated with a particular mortgage home loan.
What is a Loan Estimate?
LE is a standardized form that should be provided by all the lenders as per the guidelines set by the Consumer Financial Protection Bureau. We advise our customers not to rely on handshakes, assurances, and promises. Loan estimate mentions the exact cost of the lender’s loan. Lenders are legally bound to show an itemized breakdown of all the fees associated with the loan. However, you may discover the numbers shown on your Loan Estimate are not consistent with the numbers originally told by the lender. This is considered baiting and switching. In order to properly compare Loan Estimates, you must verify that the lenders are referencing the same rate, terms, loan amount, loan type and property value. The total cost of your loan is made up of the combined amount of sections D and J.
At Texas Trust, our innovative technology creates savings that are passed down to our customers. Our rates and pricing will be one of the most competitive in the market. As per the conditions of the Consumer Finance Protection Bureau (CFPB), customers must understand the risks, costs, and features associated with their loans. The loan terms are clearly and briefly summarized in our loan estimate provided to our customers . We recommend that you must compare and understand your Loan Estimate before moving forward with any lender.
Your initial LE
Below is page 2 of sample LE in the CFPB-approved format. Your lender must provide a LE in the format given below. This page of your LE contains the details about the cost of your loan. Your lender must provide a LE in the format given below. Bear in mind that anything that looks different is not an official Loans Estimate.
How to compare LE of different lenders
You must look for the things given below on your LE to ensure that you are getting the best deal.
1. The Most Important Section to Compare on the Loan Estimate will be Section A
Section A on the LE will show you the lender fees. Lender fees can vary significantly across different lenders, and comparing Section A will give you a good idea of what your actual lender costs are. One caveat that Section A does not take into account, will be any Lender Credits that you are receiving. These Lender Credits will be a separate line item under Section J. In order to calculate your true Lender Fees, you will want to subtract the Lender Credits in Section J from Section A.
2. Be cautious of inconsistencies in the types of third-party fees
In general, third-party fees associated with a loan will be fairly constant across all lenders. Some lenders will charge excessive third-party fees and this will increase your overall loan costs. We are happy to assist in reviewing Loan Estimates. Please call us today to consult.
3. You can offset your closings costs
When refinancing your current mortgage, you have an option to roll your closing costs into the loan. This will cause your mortgage amount and monthly payments to increase as you are financing the closing costs associated with the refinancing, but you will not need to bring money to closing.
Texas Trust upholds transparency and accountability at all costs
The purpose of our LE is to create transparency and accountability. We honor the terms outlined in the Loan Estimate, what you see is what you will receive.
Beware of bait-and-switch
Sometimes lenders will advertise one product with extremely attractive rates and fees then switch that product with something less competitive when you are locking in, known as bait-and-switch. You must be cautious of such lenders and ask for any hidden costs. It is also likely that the new product is not as competitive as the one advertised in the first place. Therefore, you must shop around to find the best rates before locking into any deal.
Texas Trust’s aim
Our loan officers are always ready to answer your mortgage related queries. Texas Trust Home Loans strives to provide maximum options to our customers so that they can choose the loan that best suits their needs and circumstances. We encourage you to compare the feature and benefits of our loan with any other competitive offer that you may have and are known for our transparent and fast mortgage process. At Texas Trust, we do not believe in pressure sales and let our customers choose from the variety of loans that we offer.
It is our commitment to ensure transparency at all costs during the mortgage process. We feel proud when our customers appreciate our efficient mortgage process. For further information, you can visit our website www.texastrustloans.com.