A loan estimate is a document that outlines the details of a mortgage loan you have applied for. It includes key information such as the loan amount, interest rate, closing costs, and monthly payment breakdown. The purpose of the loan estimate is to provide borrowers with a clear understanding of the costs and terms of the loan, allowing them to compare different loan offers and make an informed decision.
In Alabama, you will typically receive a loan estimate shortly after you have submitted a mortgage application. According to the Consumer Financial Protection Bureau (CFPB), lenders are required to provide borrowers with a loan estimate within three business days of receiving their application. This timeline applies to most mortgage loans, including those for home purchase or refinancing.
Please note that specific timelines may vary depending on the lender and other factors. It is always best to check with your lender for the most accurate information regarding when you can expect to receive a loan estimate in Alabama.