What is Changed Circumstance?
A changed circumstance is an event that allows a lender to revise a loan estimate, such as new information about your credit, income, or the property, within specific rules.
A changed circumstance is a permissible reason under mortgage regulations for a lender to issue a revised loan estimate with different costs or terms. Examples include a new appraisal showing a lower value, a change in your credit score, or your decision to change loan programs. Borrowers may see a changed circumstance when their situation differs from what was initially assumed. Watch for whether the revised estimate is justified and timely; lenders must provide a revised disclosure within specific timeframes. Keep copies of all estimates to compare. If you disagree, ask for an explanation and consider comparing offers from other lenders.
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