Good Faith Estimates

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.

Good faith estimate
(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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