www.we fix When you are applying for a mortgage, you will need to be able to
answer the question what is a good faith estimate. This is a list of
the estimated costs of a mortgage that you can expect to pay should you
be approved for the loan. It is required by the government that lenders
provide this information to you within a few days of receiving your
application.
However, it is important to understand that the receipt of this document does not in any way guarantee that you will be approved for the funds that you are requesting. Many things go into the approval process and it can take an extended period of time. This is the reason that the lenders are required to provide you with this information.
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In addition to being a required document, it can also be very useful to the borrower when they are comparing a variety of lenders. The document is required to list a variety of possible costs including the interest rate, lender's fees, title fees, transfer costs, prepaid interest charges and other costs that may occur. The difficulty lies in the possibility that these charges may be inaccurate or incomplete or that lenders may list them differently.
For this reason it will be important that the borrower fully understands the meaning of several different terms and how the terms are used. By understanding the GFE, you will find yourself better able to make a wise decision when selecting your mortgage lender.
In addition to understanding the terminology that might be used on these reports, you will want to consider the overall effect of these charges on the amount that is to be financed. Whatever lender you choose, there are certain costs that cannot be avoided. Things such closing costs and title fees will always be a part of any mortgage.
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Additionally, when you are reading over your GFE, make a note of what types of insurances you are being charged for. In some instances, mortgage insurance or flood insurance may be included on the document. If these charges appear, make certain that you are clear as to why you are being charged for this. Additionally, other insurances may be less expensive if you arrange them for yourself, so keep this in mind as well.
Also it will be important to keep in mind that the figures you are quoted are only estimates. In many cases, fees can fluctuate as much as fifteen percent in a very short period of time. The same is true of interest rates. As a result, the actual amount that you might end up paying could be higher or lower than the estimated costs.
When you are asked what is a good faith estimate, you will be able to answer positively. Once you have viewed a couple of these, you will have a better understanding of the various terminology that is used within them. By understanding the terminology you will be better able to make a good decision regarding your mortgage lender when the time comes.
However, it is important to understand that the receipt of this document does not in any way guarantee that you will be approved for the funds that you are requesting. Many things go into the approval process and it can take an extended period of time. This is the reason that the lenders are required to provide you with this information.
In addition to being a required document, it can also be very useful to the borrower when they are comparing a variety of lenders. The document is required to list a variety of possible costs including the interest rate, lender's fees, title fees, transfer costs, prepaid interest charges and other costs that may occur. The difficulty lies in the possibility that these charges may be inaccurate or incomplete or that lenders may list them differently.
For this reason it will be important that the borrower fully understands the meaning of several different terms and how the terms are used. By understanding the GFE, you will find yourself better able to make a wise decision when selecting your mortgage lender.
In addition to understanding the terminology that might be used on these reports, you will want to consider the overall effect of these charges on the amount that is to be financed. Whatever lender you choose, there are certain costs that cannot be avoided. Things such closing costs and title fees will always be a part of any mortgage.
Additionally, when you are reading over your GFE, make a note of what types of insurances you are being charged for. In some instances, mortgage insurance or flood insurance may be included on the document. If these charges appear, make certain that you are clear as to why you are being charged for this. Additionally, other insurances may be less expensive if you arrange them for yourself, so keep this in mind as well.
Also it will be important to keep in mind that the figures you are quoted are only estimates. In many cases, fees can fluctuate as much as fifteen percent in a very short period of time. The same is true of interest rates. As a result, the actual amount that you might end up paying could be higher or lower than the estimated costs.
When you are asked what is a good faith estimate, you will be able to answer positively. Once you have viewed a couple of these, you will have a better understanding of the various terminology that is used within them. By understanding the terminology you will be better able to make a good decision regarding your mortgage lender when the time comes.
