A second opinion on your Loan Estimate
Already have a Loan Estimate from another lender? Send me the numbers and I will tell you what looks high, what looks low, and what is missing. It costs nothing, nobody pulls your credit, and the decision stays yours.
Reviewed by Jennifer Ferrara, NMLS #2781982Last updated
What I can tell you from one estimate
Every lender uses the same three page federal form, so any two estimates can be compared line by line. Here is what I look at first.
Rate versus APR
The gap between them shows how much of the cost sits in fees and points instead of the rate itself. A low rate with a high APR usually means the cost moved somewhere else.
Points and credits
Whether the rate was bought down with points or paid for with lender credits, and what that does to your total cost and your cash to close.
Lender fees in Section A
These are the fees the lender itself charges. They are the easiest to compare and the hardest to spot on page one.
Taxes and insurance
Whether the estimate used a realistic tax rate for your town. New communities with a MUD or PID are where estimates most often come in light.
Cash to close
What you actually need to bring, and which part is a seller credit and which part is real savings.
Lock and timing
When the estimate and the rate lock expire, and what happens to your closing date if they do.
How to read a Loan Estimate
The estimate is three pages. Knowing where to look makes the difference between a number you are told and a number you understand.
Page 1: the loan and the monthly picture
The top shows the loan amount, the interest rate, the term, and the monthly principal and interest. It also says whether the rate can change, whether there is a penalty for paying early, and whether there is a balloon payment. Below that, projected payments add mortgage insurance and the estimated taxes, insurance and assessments, and the box at the bottom shows estimated closing costs and cash to close.
Page 2: where the fees live
This is the page that matters most. Section A lists the lender’s own charges, including any points. Sections B and C are third party services, split into the ones you cannot shop for and the ones you can. Section D adds A through C into total loan costs. Sections E through H cover government fees, prepaid items, the initial escrow deposit, and other costs, and Section J is total closing costs after any lender credits.
Page 3: the comparisons
The last page shows the total you will have paid in five years, the principal you will have paid off, the APR, and the total interest percentage. It also lists other considerations, like whether the loan can be assumed, what happens if a payment is late, and what happens to your servicing. This is where two estimates compare most fairly.
Which fees can change
The lender’s own charges in Section A generally cannot go up after the estimate unless something changes in your situation. Some third party fees can rise up to a combined 10 percent, and taxes, insurance and prepaid items can move with the real figures. Knowing which is which keeps a surprise at closing from being a surprise.
Source: Consumer Financial Protection Bureau, Loan Estimate explainer.
Send me your estimate
Type in the numbers from your Loan Estimate. Page 1 has most of them. If you would rather skip the typing, text me a photo of pages 1 to 3 at (512) 994-8080. Please do not send your Social Security number, income, or bank information yet. Those come later, through a secure channel, once we are actually moving on a loan.
What happens next
I review it myself
Within one business day I go through your numbers line by line, check your town’s real tax figure, and look for anything that does not add up.
You get a straight answer
I tell you what looks high, what looks low, and what is missing, with the math shown side by side. If your estimate is already a good one, I will say so.
You decide what comes next
If it makes sense to see what I can do, the next step is an application, which is how you get real numbers from me. No pressure, and no obligation.
What this is and is not
A second opinion is a comparison. It is not a Loan Estimate, a quote, a pre-qualification, or a commitment to lend. Real terms from me come after an application and are subject to credit approval.
Questions about a second opinion
Can you review a Loan Estimate from another lender in Texas?
Yes. Every lender uses the same three page federal form, so I can compare any estimate line by line. I need the numbers, not a login, and I do not need to pull your credit to read it.
Does a second opinion affect my credit?
No. I do not pull credit to review an estimate. Separately, mortgage inquiries made while you shop within a short window are generally counted as one by the scoring models, typically a window of 14 to 45 days depending on the model, so comparing lenders is expected.
What do I need to send?
The loan type, loan amount, interest rate and APR, total closing costs, and the city or ZIP of the home are enough to start. If you have them, the cash to close, Section A charges, monthly payment, the date of the estimate, and your rate lock date make the comparison sharper.
What is the difference between an interest rate and an APR?
The interest rate is what you pay to borrow the money. The APR folds in certain fees and costs, so it shows the borrowing cost more completely. When the two are far apart, a large share of the cost sits in fees or points.
Which fees on a Loan Estimate can change before closing?
The lender’s own charges in Section A generally cannot increase unless something changes in your situation. Some third party services can rise up to a combined 10 percent. Taxes, insurance and prepaid items can change with the real figures, which is why I check those against your town.
How long is a Loan Estimate good for?
The closing cost estimate has to stay available for at least 10 business days after it is delivered. The interest rate lock is separate and has its own expiration date, so check both.
Can I switch lenders after I get a Loan Estimate?
Yes. A Loan Estimate is not a commitment, and you can compare and choose any lender. Some costs, like an appraisal already ordered, may already be spent, so it helps to compare early.
Do you guarantee a better deal?
No. Sometimes the estimate you have is already a good one, and I will tell you that. When there is a difference, I show it with the math and you decide.
Is the second opinion free?
Yes. There is no cost to send me your estimate and no obligation. A real comparison with real numbers from me starts with an application.
This is not a commitment to lend. All loans are subject to credit approval, income and property verification. Rates, terms, and programs are subject to change without notice. Nook Lending is powered by MPA Home Loans. Jennifer Ferrara, Loan Officer, NMLS #2781982. MPA Home Loans NMLS #2778343. Equal Housing Opportunity.