The Consumer Financial Protection Bureau is responsible for administering and imposing regulations pertaining to finances. The Real Estate Settlement Procedures Act (RESPA) is a federal regulation that distinctly concerns property and mortgage transactions, including mortgages. One of the rules by RESPA is the stipulation that a Good Faith Estimate (GFE) be sent to all parties who apply for a mortgage. This article offers facts on lender good faith estimates for Burlington MA home buyers.
Good Faith Estimate Definition
A Good Faith Estimate includes closing costs, loan percentages, and additional charges associated with getting a mortgage from a certain lender. It is meant to permit home buyers to analyze programs offered by individual mortgage companies and to outline the overall charges involved with obtaining a loan. Mortgage companies are obligated to provide a Good Faith Estimate within 3 days of a mortgage application.
Variations In Good Faith Estimates
Certain fees in GFEs are administered individually by a lender while others (such as filing costs) are set by districts where the paperwork is filed. Lender controlled items, such as underwriting charges, vary from one lender to another and reviewing GFEs is how you will notice those variations. Remember that a GFE is just an estimate based on information available at the time of the loan application. Some items may not increase, some may change by a limited percentage, and others can be based on your purchase price or other factors. Ask your lender about which charges can increase or decrease if you are worried about the final figures.
Understanding Lender Good Faith Estimates For Burlington MA Home Buyers
Although GFE templates have been amended in recent years, it may still be a little difficult to comprehend. Ask your mortgage professional or legal professional to explain the figures in the GFE and ensure that you understand it before moving forward with a particular mortgage.