What is a valid reason for revising a Loan Estimate?

Revising a Loan Estimate is permitted under specific circumstances to ensure accuracy in the provided estimates for the borrower. A valid change of circumstances is one such reason that substantiates the need to revise the Loan Estimate. This can include various factors such as changes in the borrower's credit profile, changes in the property, or other relevant factors that could impact the terms or costs of the loan.

When a valid change of circumstances occurs, it justifies the need for a revised Loan Estimate to reflect the updated information accurately. This requirement helps maintain transparency and allows borrowers to make informed decisions based on their current situation rather than outdated estimates.

Other options may not necessarily warrant a revision. For instance, while a decrease in the down payment, an increase in the loan amount, or changes in the borrower's income may impact the loan terms or affordability, they don't automatically qualify as valid reasons for revising the Loan Estimate unless a specific change of circumstance is confirmed. This ensures that revisions are made based on substantial and relevant information, protecting both lenders and borrowers.