How do I best compare the offers from different lenders?
Three words: Good Faith Estimate (GFE). This standard form will allow you to accurately and fairly compare rates and fees. This gives you the chance to uncover any hidden fees and the true differences between loans. You will also want to look at the APR on the Truth-in-Lending Statement. The general rule of thumb here is that the lower the APR, the less cost associated with the loan. Q: What is a Good Faith Estimate (GFE)? A: A GFE is a preliminary estimate of the closing costs and fees for your mortgage. When comparing lenders’ offers, make sure that you review this form along with the Truth-In-Lending Statement from each lender. Q: What is a Truth-In-Lending (TIL) Statement? A: A TIL is used in connection with the Good Faith Estimate (GFE). A TIL gives you the total cost of a mortgage with the closing costs and fees included. A TIL will allow you to determine if a higher rate with low fees is better for you than a lower rate and higher fees, and vice versa. Q: What is PITI? A: It sta
