1. Module 2: The Loan Estimate – Step by Step
8-Hour SAFE Comprehensive Continuing Education

2. Module 2: The Loan Estimate – Step by Step
2.1 Page 1 of the Loan Estimate Form
General Information
(1-3) Top of Page 1  (8) Loan Term
(4) Date Issued  (9) Purpose
(5) Applicants  (10) Product
(6) Property  (11) Loan Type
(7) Sale Price or Property Value  (12) Loan ID#
(13) Rate Lock

3. Module 2: The Loan Estimate – Step by Step
2.1 Page 1 of the Loan Estimate Form
Loan Terms
(1) Loan Amount
(2) Interest Rate
(3) Principal and Interest Payment
(4) Prepayment Penalty
(5) Balloon Payment
(6) Adjustments after Consummation
(7) Details about Prepayment Penalty and Balloon Payment
(8) Timing

4. Module 2: The Loan Estimate – Step by Step
2.1 Page 1 of the Loan Estimate Form
Projected Payments
(1) Periodic Payment or Range of Payments
Initial Periodic Payment  Subsequent Periodic Payments
(2) Itemization
Principal and Interest
Adjustable Rate Loans  Negative Amortization
Mortgage Insurance  Estimated Escrow
Estimated Total Monthly Payment
(3) Payment Calculation Column Headings
Number of Columns
(4) Estimated Taxes, Insurance & Assessments

5. Module 2: The Loan Estimate – Step by Step
2.1 Page 1 of the Loan Estimate Form
Costs at Closing
CFPB Website

6. Module 2: The Loan Estimate – Step by Step
2.2 Page 2 of the Loan Estimate Form
Closing Costs Details: Loan Costs
(A) Origination Charges
(B) Services You Cannot Shop For
Title Insurance Services
(C) Services You Can Shop For
(D) Total Loan Costs

7. Module 2: The Loan Estimate – Step by Step
2.2 Page 2 of the Loan Estimate Form
Closing Costs Details: Other Costs
(E) Taxes and Other Government Fees
(F) Prepaids
(G) Initial Escrow Payment at Closing
(H) Other
(I) Total Other Costs
(J) Total Closing Costs

8. Module 2: The Loan Estimate – Step by Step
2.2 Page 2 of the Loan Estimate Form
Calculating Cash to Close
Calculating Cash to Close Table
(1) Total Closing Costs
(2) Closing Costs Financed (Paid from Your Loan Amount)
(3) Downpayment/Other Funds from Borrower
(4) Deposit
(5) Funds for Borrower
(6) Seller Credits
(7) Adjustments and Other Credits
(8) Estimated Cash to Close

9. Module 2: The Loan Estimate – Step by Step
2.2 Page 2 of the Loan Estimate Form
Adjustable Payment (AP) Table
(1) Interest Only Payments?
(2) Optional Payments?
(3) Step Payments?
(4) Seasonal Payments?
(5) Monthly Principal and Interest Payments

10. Module 2: The Loan Estimate – Step by Step
2.2 Page 2 of the Loan Estimate Form
Adjustable Interest Rate (AIR) Table
(1) Index and Margin
(2) Increases in Interest Rate
(3) Initial Interest Rate
(4) Minimum/Maximum Interest Rate
(5) Change Frequency
(6) Limits on Interest Rate Changes

11. Module 2: The Loan Estimate – Step by Step
2.3 Page 3 of the Loan Estimate Form
Contact Information
Comparisons
(1) In 5 Years
(2) Annual Percentage Rate (APR)
(3) Total Interest Percentage (TIP)

12. Module 2: The Loan Estimate – Step by Step
2.3 Page 3 of the Loan Estimate Form
Other Considerations
(1) Appraisal
(2) Assumption
(3) Homeowner's Insurance
(4) Late Payment
(5) Refinance
(6) Servicing
Confirm Receipt

13. Module 2: The Loan Estimate – Step by Step
2.4 Activity One – Loan Estimate
Case Study
The Seller
Seller’s Broker
The Buyer
Buyer’s Lender and Loan Terms
Settlement (Escrow) Agent
Completing the Loan Estimate
Estimated Costs - Seller
Estimated Costs - Buyer