Erin Murphy, Other/Just Looking in New York

WHAT IS A GOOD FAITH ESTIMATE, AND HOW DOES IT HELP ME?

Asked by Erin Murphy, New York Thu Mar 7, 2013

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A Good Faith Estimate should help you to see your closing cost, and compare cost with other banks.
1 vote Thank Flag Link Thu Mar 7, 2013
I need help with this too! Thanks. BTW, if anyone needs to fill out a good faith estimate form, I found a blank form here http://pdf.ac/6LKNL
Flag Thu May 14, 2015
Dear Erin:

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!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
1 vote Thank Flag Link Thu Mar 7, 2013
Hi Erin,

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.

Michael Richman
Licensed Real Estate Associate Broker
KIAN Realty
450 7th Avenue Suite 1501
New York, NY 10123
212-757-8268 x220
917-991-2528
mrichman@kianrealtynyc.com
http://www.kianrealtynyc.com
0 votes Thank Flag Link Sat Mar 9, 2013
A good faith estimate must be provided by a mortgage lender or broker in the United States to a customer, as required by the Real Estate Settlement Procedures Act (RESPA). The estimate must include an itemized list of fees and costs associated with the loan.

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.
0 votes Thank Flag Link Fri Mar 8, 2013
Erin, the Good Faith Estimate is required by law to be disclosed to all applicants purchasing or refinancing residential property and will include estimated closing costs from your lender, title company, government and third party providers as well loan terms and payments. The GFE helps you to compare lenders and prepares you for the estimated costs associated with closing your mortgage. Your mortgage professional will provide you with a GFE. Under our Mortgage for Champions program, we waive all bank fees dramatically reducing the cost of closing your loan. I have extensive experience helping first time buyers to become successful homeowners throughout NYC and nearby suburbs. I can be reached directly at 917.699.0183 for more info or assistance.

I value your feedback, please hit the thumbs up if my reply was helpful. All the best!

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
Mdenniston@RHFunding.com
http://www.rhfunding.com
.
0 votes Thank Flag Link Fri Mar 8, 2013
Erin, a Good Faith Estimate (GFE) is an estimate of all closing costs, no just from the lender, but also title related charges, taxes, etc.

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!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
0 votes Thank Flag Link Thu Mar 7, 2013
Your GFE is made up by your Lender, and is required by Federal Law.
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.
0 votes Thank Flag Link Thu Mar 7, 2013
Erin,

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.
0 votes Thank Flag Link Thu Mar 7, 2013
Hi Erin - a GFE will show you all the costs associated with your loan and purchase. Remember, it is an estimate and things can change, especially if you change the loan and/or parameters of the trasnaction and loan as you move forward during your escrow/contract period. They are provided by your lender and you may still want to review it with your Realtor to see what he/she sees on the line items. All loan fees should be included and estimated as well. It will tell you (help you) see closely, how much money you will need to bring to the table and what your loan will ultimately cost you. Hope this helps. Cheers!
0 votes Thank Flag Link Thu Mar 7, 2013
This is a statement that a lender has to provide when you apply for a loan.
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.

Good luck.

Kadibhai (Kadi)
Better Homes & Gardens Gary Greene, Realtor Katy/Houston
Phone: 832-228-7978
Fax: 281-646 1841
Email: kadi.kadibhai@garygreene.com
Web: http://www.har.com/kadi
"The highest compliment I am ever given is when
I am referred to your family & friends!"
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0 votes Thank Flag Link Thu Mar 7, 2013
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