First Home Loans Fort Myers – Your loan amount will be compared to your appraised value to determine your loan-to-value (LTV) ratio. This ratio will be used to compute your loan’s financial risk. If you’re buying a house with a conventional loan an LTV ratio greater than 80% may mean you’re required to pay private mortgage insurance (PMI), which covers the lender against loss if you fail to repay your loan. First Home Loans Fort Myers. We’ve heard every trick in the book that other lenders will use to avoid being transparent about the total amount of closing costs.  You need to know the total closing costs even if you are told any of the following: “the closing costs are rolled in” or “nothing out of pocket” or “no lender fees”.  We recommend that you get it in writing. A lender is required by law to provide you with a Loan Estimate form within three business days after receiving your mortgage application. Closing fees will vary depending on your state, loan type, and mortgage lender, so it’s important to pay close attention to these fees. The Loan Estimate outlines the estimated closing costs and other loan details. The loan program matters. For example, it is not unusual for the lowest interest rate option to be a government loan program such as an FHA loan but quite often these loan programs can result in a higher payment due to additional upfront and monthly fees.  As we mentioned above, your Loan Estimate must be provided to you no later than three business days after you submit a loan application. You should review your Loan Estimate to make sure it reflects what you discussed with your loan originator. The form provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan. The Loan Estimate also gives you information about the estimated costs of taxes and insurance, and how the interest rate and payments may change in the future.