Important Points To Know About Good Faith Estimates

Dated: 05/17/2015

Views: 431

Good Faith Estimates or GFE's provide you the numbers you will need at closing, so understanding your GFE's is very important. 

Take a look at page 2 of the GFE, where all the closing costs are itemized.

- The section which outlines all the fees charged by your bank, credit union, mortgage lender or mortgage broker are generally negotiable. You have options to pay less in fees in exchange for a higher interest rate on your mortgage, or you can choose to pay more fees in exchange for a lower rate on your mortgage. You have control on how much or how little you will pay for this section, based on your lender and loan program. 

- Third Party Closing Costs outlines all the fees charged by 3rd parties like appraisal and title companies. These fees may vary but in general, they are very similar across the board. 

- Government charges are transfer and recording fees, and you nor the mortgage company have control over how much the government is charging. These charges need to be the same from one GFE to another.

-Prepaid items are NOT closing costs. Such are your initial deposit and mortage interest.

- Points and Closing Costs paid by seller still need to be on the GFE. 

Blog author image

Florida Rodriguez

We just purchased our first home today and I cannot thank Florida enough for all her help. She is very professional and very thorough in assisting us since day 1. She always make herself available and....

Latest Blog Posts

5 Ways To Ruin A Real Estate Sale

Negotiation is key in real estate. Having an agent with strong negotiation skills is a must because using the wrong negotiation tactics can sink a deal pretty quickly. Here are some negotiation

Read More

Creative Ways To Get Your Offer Accepted By A Seller

So, you’re fіnаllу ready to take thе plunge and рut іn an оffеr on уоur drеаm hоuѕе. Yоu fоund something thаt is perfect for you and your fаmіlу’ѕ nееdѕ, аnd you’re

Read More

Which Down Payment Strategy Is Right For You

You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and

Read More

Benefit And Value Of Attending A Homebuyer Workshop

Fоr most, homebuying seems tо bе an оvеrlу соmрlісаtеd рrосеѕѕ. It entails so many steps – mоrtgаgе аррlісаtіоn аnd аррrоvаl, mаkіng аn оffеr, ср

Read More