Signing Loan Estimate Documents

[Michael Penn]

**My 1st Post!!**

Hello BP Community, 

I am in the process of doing a cashout refinancing my first property (30 year fixed) and have been requested to sign the Loan Estimate documents. My concern is the current estimated loan amount is lower than the requested amount I discussed with my loan officer by about $15K. The closing costs also reflect escrow costs that should already be in place from the current mortgage as I am refinancing with the same institution that has my first mortgage. She has assured me that once we receive the appraisal/inspection back they will update the amount accordingly. I have worked with her on the original mortgage and she has been super helpful but I'm doing my due diligence. Are there any red flags about signing the loan estimate that doesn't match the requested amount that we discussed? Any other tips to consider when refinancing.

[Chasity Young]

Signing your loan estimate is necessary to advance to the next milestone.  Its just acknowledgement of receipt of AN estimate because the bank legally must disclose some terms within 3 days of an application. It doesn't commit you to anything or even mean you are in agreement with the terms.