Answer: Kate reviewing the Loan Estimate, is looking over the document that provides the approximate loan-related costs, along with the loan's terms.
Explanation:
What exactly is a loan estimate?
- After applying for a mortgage, you will be given a Loan Estimate, which is a three-page form. The Loan Estimate provides important information about the loan you have requested. Within three business days of receiving your application, the lender must provide you with a Loan Estimate.
- The Loan Estimate is a new form that went into effect on October 3, 2015.
- The form includes vital information such as the estimated interest rate, monthly payment, and total loan closing costs.
- The Loan Estimate also details the estimated costs of taxes and insurance, as well as how the interest rate and payments may change in the future.
- Furthermore, the form indicates whether the loan has any special features that you should be aware of, such as penalties for repaying the loan early (a prepayment penalty) or increases in the mortgage loan balance even if payments are made on time (negative amortization). If your loan has a negative amortization feature, it is mentioned in the loan product description.
To learn more about loan estimate refer:
What is a Loan Estimate? | Consumer Financial Protection ...
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