I have been working on a post about Good Faith Estimates (GFEs) for some time now, and Rhonda Porter at RCG wrote a great post about the same subject last week. When you are seeking to purchase a home, the lender should give you a Good Faith Estimate showing what your estimated closing costs will be.
This is a Good Faith Estimate provided to one of my clients by a BOB (Big ‘ol Bank) and presented as having no points.
(Full PDF here)
Equally, if not more egregious is that this was 45 days from Closing and they were offering a 30 Day Lock. What happens when on closing day, the rate is .5% higher than the lock and the buyer no longer qualifies? Or does so painfully, with great sacrifice?
The lender (whom I recommended) was upfront with his fees, which were far less, didn’t try to slide in bogus fees, and is closing the loan within $130 of his original GFE – to the Buyer’s credit.
Lessons learned:
- Compare lenders.
- There are unscrupulous people out there.
- Work with those you trust.
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