Oh hello … there’s a blog here under all these cobwebs. Been a while since I’ve been here.
Sorry about that, but maybe you didn’t notice.
I was working with some folks on Monday and suggested that as part of the pre-approval process, we get a Good Faith Estimate from the lender. They looked at me and said, “what’s a Good Faith Estimate”? Settle in …
A Good Faith Estimate (GFE) is an estimate that’s provided by a lender, to a borrower, that estimates the closing costs for a particular transaction. The estimate is provided within three days of loan application, and is required by law according to the Real Estate Settlement and Procedures Act. In some cases, the closing costs can vary wildly, but in my experience most local lenders can do a good job of getting it very, very close. Nevertheless, the Good Faith Estimate is just that – an estimate. Regardless of whether it’s an estimate or not, the GFE should document to the penny every cost associated with the transaction.
Only a lender can provide you a GFE, but one in particular has gone even further. Brandon Nicely, of Alcova Mortgage, has allowed me to share a closing cost calculator with you. It’s currently in Excel format so if anyone knows how I can upload the file and its related formulas to WordPress, please let me know. Otherwise, if you’d like me to email it to you, just send me a note and I’ll gladly send it along.
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Check with that lender again about a new requirement for lenders to provide a GFE immediately and again if there are any rate changes. There also may be a review (cooling-off) period for the borrower… and if they didn’t lock-in until the day before the scheduled closing then you will have to reschedule that closing. I think it is a three day wait.
Check with that lender again about a new requirement for lenders to provide a GFE immediately and again if there are any rate changes. There also may be a review (cooling-off) period for the borrower… and if they didn’t lock-in until the day before the scheduled closing then you will have to reschedule that closing. I think it is a three day wait.
Yes, I’m sure you know about the new Good Faith Estimate guidelines. A new GFE is required if there’s a change in rate of 1/8 of a point or more, and the buyer has a three day right of review.
Lots more to come …
Yes, I’m sure you know about the new Good Faith Estimate guidelines. A new GFE is required if there’s a change in rate of 1/8 of a point or more, and the buyer has a three day right of review.
Lots more to come …