Good Faith Estimate

Shopping for a mortgage loan can be an extremely challenging process.  To help with this process, lenders are required to provide borrowers a document called the good faith estimate. The good faith estimate, often referred to as the GFE or estimate of closing costs is a useful tool that all consumers should obtain prior to making a loan commitment. This provides an outline of a lender or banks  closing fees, as well as an estimate of the third party closing costs.

 
Typical lenders fees including:

  • Underwriting Fees
  • Processing Fees
  • Discount Points
  • Loan Origination Fee
  • Credit Report Fees

A good faith estimate will also overview the estimate third party fees associated with a mortgage loan including:

 

  • Appraisal
  • Title insurance
  • Title company closing fees
  • Tax stamps
  • Attorney fees
  • Recording fees
  • Surveys
  • Notary charges

 

If you are comparison shopping it is important to find out how long the estimate you receive will be good for. Consumers may not be aware that mortgage rates and fees can change daily. You should also find out if the mortgage loan you are applying for has a pre payment penalty and what items on the good faith estimate could potentially change depending on your credit score and home appraisal.

 

Right

Rates, News & Advice Articles

September 1, 2010

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August 27, 2010

The stock market finally caught a relief rally on Friday, as the DOW jumped well over 100 points on optimism from a reassuring speech from Fed Chairman Ben Bernanke. The DOW was able to get back above the 10,000 point market as investors took advantage of lower equity prices across the board on the market.... 

August 23, 2010

The markets strong start lost momentum over the course of trading on Monday and the market ended up dropping nearly forty points in trading. The dip follows a swing of nearly 100 points in light trading on Monday as investors pulled back when he market was up nearly fifty points when the market opened... 

August 19, 2010

Jobs are certainly the largest component to any economy and has the potential to drive markets sharply. Today, we witnessed another example of the fallout from the employment sector as unemployment claims jumped to their highest levels in the last nine months, news that quickly led to a dramatic sell-off...