Watch out for this lender tactic

Fee sheet vs Loan Estimate ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ [Better] [Better]( This week’s mortgage rates [Rate chart] [Rate chart]( Source: US average mortgage rates from [FreddieMac]( --------------------------------------------------------------- Better Mortgage Interested in today's rates? [See Better Mortgage rates]( --------------------------------------------------------------- #FundFact As of 2022, West Virginia’s population had the highest homeownership rate—coming in at 78.6% ¹ Things to know Here’s why you should watch out for fee sheets and always get a Loan Estimate Here’s why you should watch out for fee sheets and always get a Loan Estimate When you apply for a mortgage, it’s important to get the most accurate estimates of all fees and costs associated with your loan so that you can: - Understand and prepare for the total cost of your mortgage - Compare lenders and pricing to make the best decision for your financial situation The Truth-in-Lending Act (TILA) legally requires lenders to issue a Loan Estimate within 3 days of a completed mortgage application. Watch out for lenders who give you a fee sheet instead of an official Loan Estimate document, and always evaluate lender offers with a Loan Estimate for the most accurate comparison. What counts as a completed mortgage application? A mortgage loan application is considered complete once the lender has obtained these 6 items from a borrower: - Your name - Your income - Your social security number - Address of property - Estimated property value - Loan amount Why you shouldn’t compare costs based on a fee sheet In some cases, lenders will offer a “fee worksheet” or “initial loan worksheet” to borrowers. This worksheet is a document that outlines estimated rates, terms, and monthly costs based on the initial information you’ve provided. However, borrowers should know that fee sheets are not standardized documents. And since it’s not standardized, lenders can choose which fees to include. That means the fees included on a fee sheet can vary from lender to lender, making it difficult for borrowers to do a side-by-side comparison. Unless you receive an official Loan Estimate, your actual costs and rates could be higher. Costs on fee sheets can look artificially low, or sometimes aren’t accounted for at all. But don’t take it from us, a fee sheet will state itself: “Your actual rate, payment, and cost could be higher. Get an official Loan Estimate before choosing a loan.”² What to expect on your Loan Estimate The Loan Estimate document was created to help you understand the terms of the mortgage you’re applying for in clear language. Since the Loan Estimate is a standardized form, the information included on the Loan Estimate is consistent from lender to lender. Page 1: On the first page, you’ll find mortgage terms and basic loan information like the applicant’s name and address, lender’s name and address, date issued, mortgage product, and loan ID number. You’ll also find information on loan terms, projected payments, and costs at closing. Page 2: The second page of your Loan Estimate will include a list of itemized costs associated with the loan you’ve applied for, such as the interest rate, monthly payment, closing costs, taxes and insurance, as well as other basic loan information. This page is split up into 10 sections labeled A through J. Page 3: The third page of the Loan Estimate includes additional information about the loan, such as APR and total interest percentage. You can also find your loan officer’s information, including their license number on this page. Using your Loan Estimate to compare lenders If you want to compare pricing from lender to lender, you should refer to Sections A and B of the Loan Estimate. Each section includes lender specific costs like origination charges, and the cost of your appraisal, credit report, and flood certification. According to the CFPB, when comparing mortgage terms from lender to lender, you should use the official Loan Estimate document as the source of truth.³ Since all lenders are required to use the same standardized Loan Estimate form, borrowers are able make true side-by-side comparisons when trying to choose a loan and lender that’s the right fit. Other things to know about the Loan Estimate: - By law, the lender must provide you a Loan Estimate within three business days of receiving your application. - You do not need to have a signed purchase contract in order to apply for a mortgage loan and receive a Loan Estimate. - When you receive a Loan Estimate, the lender has not yet approved or denied your loan application. The Loan Estimate shows you what loan terms the lender expects to offer if you decide to move forward. - You’re not obligated to pay an application fee other than a reasonable fee for the lender to run a credit report. - Estimates and costs on your Loan Estimate are not guaranteed and will not be considered final until you receive a Closing Disclosure. --------------------------------------------------------------- Better Mortgage Need a Loan Estimate to compare lender costs? [Apply today]( --------------------------------------------------------------- Press play Follow us on social to stay up to date with the latest mortgage tech, tips, and tools: Watch on [TikTok]( • [Instagram]( • [Facebook]( • [YouTube]( --------------------------------------------------------------- Better Mortgage Questions? Connect with a mortgage expert now. [Apply today]( --------------------------------------------------------------- Quiz How do you calculate your debt-to-income ratio (DTI)? How do you calculate your debt-to-income ratio (DTI)? - Divide monthly debt payments by gross monthly income - Divide gross monthly income by monthly debt payments - Divide home value by loan amount - Divide loan amount by home value [Better] [Better] [social]( [social]( [social]( [social]( [social]( ¹Source: [Bankrate]( ² Source: [Consumer Finance Protection Bureau]( ³ Source: [Consumer Finance Protection Bureau]( © 2023 Better Holdco, Inc. and/or its affiliates. Better is a family of companies. Better Mortgage Corporation provides home loans; Better Real Estate, LLC and Better Real Estate California Inc License # 02164055 provides real estate services; Better Cover, LLC sells insurance products; and Better Settlement Services provides title insurance services; Better Connect, LLC dba Better Attorney Match provides real estate attorney connection services; and Better Inspect, LLC provides home inspection services. All rights reserved. Home lending products offered by Better Mortgage Corporation. Better Mortgage Corporation is a direct lender. NMLS #330511. 3 World Trade Center, 175 Greenwich Street, 57th Floor, New York, NY 10007. Loans made or arranged pursuant to a California Finance Lenders Law License. Not available in all states. Equal Housing Lender [Equal Housing Lender]. [NMLS Consumer Access]( BETTER MORTGAGE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, PROMOTIONS AND BENEFITS AT ANY TIME WITHOUT NOTICE. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. 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