Mortgage Second Opinion in Wichita: How to Check Your Loan Estimate

The short answer: If you've applied for a mortgage, the lender must give you a Loan Estimate within three business days. It's a standard three-page form that every lender uses, so you can lay two of them side by side and compare. The best way to know whether an offer is competitive is to compare it with Loan Estimates from other lenders for the same kind of loan. This page shows you what to check, what to ask, and when a change is normal. If you'd like a second set of eyes, I'm happy to walk through yours with you, with no obligation to switch.

Buying or refinancing in Wichita or a nearby Sedgwick or Harvey County town? Here's how to read the form.

What a Loan Estimate is (and isn't)

• It is the lender's estimate of your interest rate, monthly payment, closing costs, taxes and insurance, and any risky loan features, based on the loan you asked for.
• It isn't an approval or a denial. It shows the terms the lender expects to offer if you move forward.
• Every lender uses the same form. That's what makes a true side-by-side comparison possible.
• You only need six pieces of information to get one: your name, your income, your Social Security number (for the credit report), the property address, an estimate of the property's value, and the loan amount you want. A lender can't require a purchase contract or income documents before giving you one.
• It shouldn't cost much. Before you receive a Loan Estimate, the only fee a lender can charge is for pulling your credit report. Other fees, like an application or appraisal fee, come only after you tell a lender you want to move forward.

A few loan types don't use this form, including reverse mortgages, home equity lines of credit (HELOCs), and some down payment assistance second loans. Those come with different disclosures.

Five lines to check first

1. Page 1: the basics are right

Check the spelling of your name, the loan term, purpose, product (fixed or adjustable), loan type (conventional, FHA, VA, USDA) and the loan amount. Buying? Your loan amount plus your down payment should equal the sale price. If it doesn't, ask why.

2. Page 1: Estimated Total Monthly Payment

Principal and interest is only part of the payment. Taxes, homeowners insurance and any mortgage insurance usually get added. Make sure the total is a number you're comfortable with every month, and check whether any taxes or insurance are not escrowed, because you'd pay those yourself in larger lump sums.

3. Page 1: risky features

Look at Prepayment Penalty and Balloon Payment. If either says "YES," ask about your other options. If "Can this amount increase after closing?" says "YES" next to the interest rate, you have an adjustable rate. Make sure that's what you expected.

4. Page 2: Section A, Origination Charges, plus Section B

Origination charges are the lender's own upfront fees (application, underwriting, processing and similar). Lenders itemize them differently, so compare the total, not the line names. Section B, Services You Cannot Shop For, is chosen by the lender, so compare that total too. On FHA, VA or USDA loans, the upfront mortgage insurance premium or funding fee shows up here. Those are generally set by the government program, not the lender.

5. Page 2: points, lender credits, and Estimated Cash to Close

• Points are an upfront fee you pay to lower your rate. If you see points, did you choose that? A similar loan may be available without them.
• Lender credits offset closing costs, often in exchange for a higher rate. Again, ask whether that's the trade-off you wanted.
• Estimated Cash to Close is roughly what you'll bring to closing: down payment plus closing costs, minus your earnest money deposit, any seller credits, and other adjustments. Plan for it with the Cash-to-Close Planner.

Wichita note: property taxes are set by local government, not the lender, and homeowners insurance is set by the insurance company you choose. If those estimates look off, check with the Sedgwick County Treasurer or your agent, and get your own insurance quote. Those two lines can move your payment a lot.

How to compare two Loan Estimates fairly

1. Same loan, same day if you can. Ask each lender for the same loan type, term, down payment and loan amount. Rates and pricing change, so estimates from different days aren't apples to apples.
2. Check the rate lock box. Some lenders lock your rate when they issue the estimate and some don't. An unlocked estimate can change.
3. Use page 3, Comparisons. It shows what you'd pay over the first five years, the APR (one measure of total loan cost), and the Total Interest Percentage (TIP). These help compare offers that are structured differently.
4. Compare Section A and Section B totals, then shop the services in Section C (Services You Can Shop For) if you want to.
5. Check the loan officer. Page 3 lists the loan officer and their NMLS ID. You can look anyone up, including me, at NMLS Consumer Access.

Worried about your credit? Within a 45-day window, multiple credit checks from mortgage lenders are recorded on your credit report as a single inquiry, according to the CFPB. So getting a second Loan Estimate usually won't hurt you any more than getting the first one did.

Don't wait too long. A lender only has to honor the estimate's terms for 10 business days. If you wait longer to say you want to move forward, the lender can revise the terms and costs.

My Loan Estimate changed. Is that normal?

Sometimes. A lender can't intentionally lowball fees and then surprise you later, but a revised Loan Estimate is allowed when certain things change. Common reasons:

• You changed the loan type (for example, adjustable to fixed) or lowered your down payment.
• The appraisal came in lower than expected.
• Your credit changed, for example after a new loan or a missed payment.
• Overtime, bonus or other income couldn't be verified.
• Your rate wasn't locked, and locking it changed the points or lender credits.

If you get a revised estimate, ask your lender: "Why did I get a new Loan Estimate? How is my loan different from what I expected? How does this change my loan amount, rate, monthly payment and cash to close?"

Then the Closing Disclosure

Before closing, you'll get a Closing Disclosure at least three business days ahead. Compare it to your most recent Loan Estimate and ask about anything that changed. See Before You Close for what to avoid in those last weeks.

Want a second opinion on yours?

If you're in Wichita or nearby and you have a Loan Estimate you're unsure about, I'm happy to walk through it with you line by line — what each number means, what to ask your lender, and what looks normal vs. worth a second look. There's no obligation and no pressure.

Please don't email your Loan Estimate, Social Security number, or bank statements, and don't send them through the website contact form. Ask a question first and we'll set up a time to go over it the right way.

Talk to Aaron about your Loan Estimate · Getting ready to buy? Start with preapproval