Start with three different numbers
Start with what you’ll pay each month, what you’ll need at closing, and what you’ll have left afterward.
Monthly housing budget
Principal and interest, property taxes, homeowner’s insurance, mortgage insurance when applicable, and HOA dues or assessments. Check what is included in the mortgage payment and what you pay separately.
Cash to close
The money you still need to bring to closing. Start with the down payment and closing costs, then account for seller and lender credits, your deposit and any other amounts you owe or have already paid. Your earnest-money deposit should be counted once.
Money remaining
What you’ll have left after closing. Your lender may require a minimum cushion, called reserves. We’ll also consider the amount you want to keep for your own peace of mind.
Start with Sections A and B of your Loan Estimate.
On page 2 of your Loan Estimate, focus on the upfront costs that vary by lender:
Origination charges
The lender’s fees, including any discount points.
Services you cannot shop for
Required services the lender selects.
Lender credits
Shown in Section J. Subtract these when comparing upfront costs.
Compare quotes for the same loan amount, loan type, repayment period and rate-lock period, requested around the same time. If the rates differ, compare the payment and upfront costs together. Lower fees alone don’t make a loan cheaper.
Compare mortgage insurance too. When it applies, premiums can vary with your credit, down payment and available loan options. I can compare eligible options alongside the rate and fees, so you can see the full monthly cost.
What about taxes, insurance and other costs?
A lower estimate for taxes or insurance doesn’t make the loan cheaper. Compare the same tax and insurance amounts, including what you pay upfront and what goes into escrow. Ask about differences in other fees; the provider or purchase details may explain them.
Also compare mortgage insurance when applicable, total payment, cash to close and costs over the time you expect to keep the loan.
Know why an option fits.
I’ll show you what each option costs now and each month, explain the tradeoffs, and answer your questions before you decide.
Tell me the payment you’re comfortable with and how much cash you want to keep. We’ll work through the choices before you write the offer.
Estimated does not mean final
Early numbers are estimates. Taxes, insurance and other details can change as the loan moves forward. Before signing, we’ll review the Closing Disclosure, the document showing your loan terms and final costs, and address any changes.
These educational resources explain the rules behind the guide. They do not establish approval for a particular loan.
Keep exploring
Compare seller credits and buydowns →A FAST CLOSE. A REAL PLAN. →THE CONDO. AND THE LOAN. →Read at your own pace. If you want to talk through your situation, book a time with Lance or send a text.