What is the Good Faith Estimate?
The Good Faith Estimate or “””GFE””” is a written estimate of the settlement charges for your mortgage transaction that must be given or mailed to you by your lender within three business days of applying for a mortgage. You shouldn’t expect the Good Faith Estimate to list the exact charges that you will pay at settlement. The Good Faith Estimate is only an estimate or range of charges. For example, the lender may not know the costs for a settlement agent that you choose, or the exact amount that will be collected for an escrow account for taxes and insurance. The best protection is to let the lender and settlement agent know that you will want to see the HUD-1 Settlement Statement one day in advance. You should question any amount that you do not understand.
Once you are pre-approved, you will receive a Good Faith Estimate (GFE). The GFE is just that…an estimate of the itemized expected costs/charges associated with closing your loan. It will break out items such as attorney’s fees, application fees, recording fees, city/county tax/stamps, insurance needed, etc. The GFE will indicate who, the buyer or seller, is responsible for the cost. The GFE will also indicate (with a √) items that will affect your APR (Annual Percentage Rate). back to questions Do I have to submit my application information online? Is your online application secure? No, you do not have to complete your application online. If you do not feel comfortable submitting your application information on-line, just pick up the phone and call us at 404-815-0291. We would be happy to assist you personally in the loan application process. Yes, our online application is secure. Secure Sockets Layer (SSL) ensures that information traveling between the browser and server are “encry
Mortgage lenders are required to give you the standardized form known as a Good Faith Estimate within 24 hours of receiving your application for a mortgage loan. Of course this isn’t the most helpful time to get your Good Faith Estimate when comparison shopping; most mortgage lenders will provide you a copy for the loan you are considering upon request. Your Good Faith Estimate is an itemized list of fees associated with your loan. Pay close attention to your loan origination fees and Yield Spread Premium as this is where most people overpay when refinancing. If you’re not familiar with these terms don’t worry…you’ve come to the right place to learn how to save money when refinancing. Loan Origination Fees Non-bank originated mortgage loans are arranged by a third person, typically a mortgage company or broker. These people work for an origination fee which is paid by you at closing.
