First-time buyers: six items for a Loan Estimate, not approval

Buying your first home? Here are six pieces of information a lender generally needs before issuing a Loan Estimate: your name, your income, your Social Security number so credit can be checked, the property address, an estimate of the property’s value, and the loan amount you want.

That list is not a promise of approval. Once a lender has those six items, the lender generally must provide a Loan Estimate within three business days. The form is a standardized, three-page snapshot of the loan you asked about. It can show an estimated interest rate, monthly payment, closing costs, taxes, and insurance, plus whether the rate is locked and whether the loan has features that can change your payment or balance.

Read it as a comparison tool, not a green light. A Loan Estimate does not mean the lender has approved or denied your application. Review the numbers, ask about unfamiliar terms, and compare offers carefully. A later underwriting review may require additional information, and terms can depend on your complete application and property.

Important notes

• Educational information only; not legal, tax, financial, or lending advice.
• A Loan Estimate is not a loan approval, denial, commitment, rate guarantee, terms guarantee, eligibility decision, or promise of closing or funding. A lender’s later review may request additional information and may produce different terms or a different decision.
• The six-item rule and three-business-day timing are for transactions covered by the applicable Loan Estimate rules. CFPB notes that some transactions, including HELOCs and reverse mortgages, use different disclosures.
• Do not ask viewers to post or send Social Security numbers, income records, bank statements, or other sensitive information in comments, direct messages, or an unapproved form. Any application or financial information belongs only in an approved employer application system.