Comparing Mortgage Loans

Asked by Oddvision, Thu Apr 18, 2013

When do you get the Good Faith Estimate, or the final details on the interest rate and all fees for the mortgage? I have a preapproval letter from one broker that just states my top amount I am approved to borrow, but does not list any interest rates or other information.

Is that done during the offer process? Do I make an offer and then have the different lenders who preapproved me provide their terms for the mortgage so I have to chooses the mortgage after the seller has accepted my offer?

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Randall Ortiz, Agent, Sacramento, CA
Fri Apr 19, 2013
I work with a great broker if you are still looking for help. Contact me if you would like his info. Read the text in the GFE, usually the interest rate they list is only good for that day. Since your loan will take a while to close and rates change daily, the GFE usually says the rate is only good for the day it was given to you. I think it would be wise to know which lender you are going to use ahead of time, that way they can gather the docs from you and be ready once your offer is accepted. It can save a lot of time.
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Gregorio Den…, , San Diego, CA
Thu Apr 18, 2013
Unfortunately, Cindy is mistaken. You cannot just get a GFE upon request. There are 6 elements that must be met before a GFE will be issued; one of them being an identified property. If you are just in the pre-approval stage and are not in contract on a property, you will not get a GFE. Any loan officer that would issue a binding GFE without an identified property is probably not the person you wish to work with anyway because that is simply reckless. RESPA is very clear on when a GFE should be issued and will hold a loan officer/lender accountable for tolerance violations.

You should ask for a fee worksheet or similar document that itemizes the fees and rate so you have an idea of what they will be. Once you are in contract, return to the lenders with the property address and ask for the GFE.
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Cindy Davis, Agent, San Diego, CA
Thu Apr 18, 2013
You should be able to get a good faith estimate upon request. You have every right to it. Typically, it's best to select your lender before writing offers. Once you get into escrow, you will have little time to shop at that point.
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Eric Johnson, Agent, Lake Forest, CA
Thu Apr 18, 2013
You get your good faith estimate shortly after applying for your home loan. However, any reputable lender will provide you with your total costs for the loan, the interest rate, the total amount you need to close escrow (including your down payment) before you apply for the loan.
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