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ATL_Homebuye…, Home Buyer in Atlanta, GA

When is it common to receive a good faith estimate from your lender?

Asked by ATL_Homebuyer_13, Atlanta, GA Tue Jul 16, 2013

I recently switched mortgage companies because the previous company I was working with confused me with another person who's credit was extremely low...scary! After they got things straight I immediately switched to another company. With my last mortgage company I received a good faith estimate a few days after the pre-approval letter was issued but is this common considering I haven't found a property yet?

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Until you have a complete and official loan application, a "Good Faith Estimate" will not be issued by the lender. You cannot meet this requirement unitl you have a property under contract.

To comply with RESPA, HUD requires that a GFE be provided to the borrower within 3 business days of offical loan application date, excluding holidays and weekends. A Pre-Qualication would not trigger a GFE being issued since there is no fully executed sales contract.

If the APR changes by more than .125%, then a new GFE will be re-issued at the time of that change.

Loan officers deal with a lot of borrower all at the same time. If you had a similar name to the other person, they could have easily picked up the wring file by mistake or placed something in the wrong file at looked at it.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Tue Jul 16, 2013
Please keep in mind, that a good faith estimate is exactly that "estimate". If you are working with an experience Reator, give her or him that copy and they will explain all the different amounts and what they mean.
0 votes Thank Flag Link Wed Jul 17, 2013
Under the Real Estate Settlement Procedures Act they are obligated to give you a full GFE report.
0 votes Thank Flag Link Wed Jul 17, 2013
First let me inform you that the previous company didn't get your credit mixed up or confused with someone else's. all of us use credit reporting agencies who provide information directly from a credit bureaus. In other words, had you gone to your new mortgage company first, tey would have had the same exact credit report as the 1st company did.

When you're pre-approved, a Loan Officer initially reviews (should be at least) your tax returns, paystubs, bank statements and credit report. When you're pre-approved you're simply somewhat screened. GFE happens when you apply for a loan, but because you're simply pre-approved and shopping for a home, there hasn't been a mortgage application yet, therefore no GFE available to you.

Closing costs and pre-paid expenses are based on what house you decide to buy. Some carry additional taxes than others depending on where they're located, te property taxes vary, the loan amounts and purchase prices vary, so there's just too much unknown factors at the pre-approval stage for any lender to provide a GFE.

What the Loan Officer can do is give you an itemized breakdown of their fees. Regardless of what lender you pick, title fees and taxes will be the same, so this portion of a GFE really shouldn't interest you right now. What will vary is the lender's fees and rates, and this you can obtain a breakdown of these #s from the Loan Officer now, before you find a house.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Tue Jul 16, 2013
No, because you dont have an application which means a GFE shouldnt be issued? Sounds like you need to work with someone who knows what theyvare doing. Call me today at 678-644-9912
0 votes Thank Flag Link Tue Jul 16, 2013
You will get a Good Faith Estimate shortly after you apply for a mortgage. You will receive another one every time anything changes. And, you will get yet anotherone shortly before closing.
0 votes Thank Flag Link Tue Jul 16, 2013
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