Question

Kenneth plans to shop around for his mortgage loan to be sure he's getting the best interest rate and terms. What document from his lender permits him to make comparisons?

a) Kenneth's settlement statement details all closing costs, so he can use it to compare lender loan products.
b) The buyer's net sheet provides all the figures necessary for comparing loan products.
c) The Closing Disclosure discloses all loan costs, so he can compare costs between lenders.
d) The Loan Estimate permits Kenneth to comparison shop.

Answer 1

Kenneth can use the Loan Estimate to comparison shop for a mortgage loan. The document includes information such as interest rates monthly payments and closing costs which help in comparing different loan offers.

Step-by-step explanation:

The document that permits Kenneth to comparison shop for his mortgage loan is the Loan Estimate. This is an early form provided by lenders after you apply for a loan which makes it easier to compare terms and interest rates. The Loan Estimate includes the estimated interest rate, monthly payment, and total closing costs for the loan.

Lenders must provide a Loan Estimate within three business days of receiving your mortgage application. This document is designed specifically to help consumers compare different loan offers on an equal basis, ensuring that they can identify the loan that is best suited to their financial situation and needs.