Estimated total monthly payment
The Estimated Total Monthly Payment appears on the first page of both the Loan Estimate and the Closing Disclosure.
Your clients see the estimated total monthly payment as soon as they receive the Loan Estimate. This provides a reference point. You can also help your clients understand the impact of fees not included in the estimated total monthly payment, such as condominium, homeowner’s association, maintenance, and any other property-related fees your client will be expected to pay.
The lender cannot ask your clients to pay for an application, appraisal, or similar fee until after they have had the opportunity to review the Loan Estimate and have indicated that they would like to move forward with their application. The need for borrowers to indicate their intent to proceed before fees are allowed is just one change. Learn more about what has and has not changed about the mortgage process.
If the estimated total monthly payment is different on the initial Loan Estimate than it is on a revised Loan Estimate or on the Closing Disclosure, your clients can easily spot the difference and make sure they understand and agree.
Estimated cash to close
The Estimated Closing Costs and Estimated Cash to Close also appear on the first page of the Loan Estimate and Closing Disclosure.
Your clients see how much money they are expected to pay in closing costs and how much they are expected to bring to the closing table as soon as they receive a Loan Estimate. The estimated cash to close includes both the closing costs as well as the down payment.
If the amounts change on any revised Loan Estimates or Closing Disclosures, your clients have the time to ask why, make decisions, and respond.