When you put a mortgage application in with they will give you a good faith estimate. This estimate shows you the interest rate you will be receiving, type of loan product, monthly costs and all the closing costs you will have to pay that are associated with the loan/deal. The purpose of the Good Faith Estimate is to make sure that consumers know all of the expenses or costs they will incur prior to actually closing the deal. Different banks charge different types of fees and different amounts for certain fees. You can use a Good Faith Estimate to shop around mortgages with banks to see who will give you the best deal. If you have further questions about mortgages and/or good faith estimates, contact a mortgage banker of if you like contact me and I can connect you with one. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Within 3 business days of applying for a mortgage loan, the lender must provide to you in writing a list of approximately how much your closing costs will be. The benefit to you is twofold:
First, you can use it to shop around, though I have never known anyone to do this since they get the estimate when they apply for the loan; and
Second, because of penalties written in to the law a couple of years ago, you are protected against unreasonable differences in the amount of the estimate and the actual final cost that you pay.
Licensed Real Estate Associate Broker
450 7th Avenue Suite 1501
New York, NY 10123
These mortgage fees, also called settlement costs or closing costs, cover every expense associated with a home loan, including inspections, title insurance, taxes and other charges. This helps you as far as knowing what your closing costs are going to be and whether you can afford it or not.
A good faith estimate is a standard form which is intended to be used to compare different offers (or quotes) from different lenders or brokers.
The good faith estimate is only an estimate. The final closing costs may be different; however the difference can only be 10% of the third party fees. Once a good faith estimate is issued the lender/broker cannot change the fees in the origination box.
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Michael Denniston l Cell: (917) 699-0183
Residential Home Funding, Corp.
Licensed Mortgage Loan Originator l Sales Manager
6901 Jericho Turnpike Ste. 219 | Syosset, NY 11791
Main: (516) 605-1733 | Fax: (888) 881-2557
NMLS # 24076 | Company NMLS # 34973
How is a GFE helpful? Well in essence you're obtaining a written estimate from a lender. So if you're shopping around, and obtain a couple GFEs, you'll be able to compare fees & rates. I always advise my clients to allow their attorney to review the GFEs for them. You'll probably see a few GFEs in your lifetime, while your attorney probably sees these type of documents on the regular. They'll be able to spot any unusual or extrodinarily high fees. It allows them to advice you better on making a decision on what lender to pick as well. Good luck!
Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
It shows the Interest Rate, (basic) as well as the APR includes some peripheral fees which can impact the basic rate.
It should also show various fees and charges for various people involved in the Loan.
Ask your Loan Officer to explain it to you.
I would recommend getting at least two GFE's from two different Lenders: It will cost you two Credit Checks and possibly two Application fees; but it is probably worth it; especially if one of them is trying to rip you off on fees.
Don't confuse the GFE with the HUD1; which is done by the Title Company and shows all the fees, charges and monies in the Escrow: Two columns, one for Buyer, one for Seller; what money is needed and where the money goes; Pre-paid Taxes and Insurance, Notary, Escrow fee, etc.
A Good Faith Estimate provides the buyer with a +/- idea of what closing costs might be expected to come to.
It is good faith because no one can know for sure what last minute items might come up at closing.
It helps you be prepared. Be sure to bring a checkbook anyway.
It gives you an estimate all the costs associated to your loan for the house you are about to buy.
It's a law for the lenders to provide you one.
And also they can go above a certain percentage from those estimated costs.
Better Homes & Gardens Gary Greene, Realtor Katy/Houston
Fax: 281-646 1841
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