Mortgage Good Faith Estimate Explained In New Loan Love Article

PR Newswire

SAN DIEGO, July 24, 2013 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A recently posted article on the website continues to offer the best advice by explaining what a mortgage good faith estimate is and how borrowers can use it to their advantage.

The Loan Love article says: "It's finally over: All those hours spent searching for the perfect home, shopping around for mortgages and running different scenarios on a mortgage calculator are finally behind you. You've got your loan and found your house – all that's left is the closing. Sign a few papers, grab the keys and the house is yours. Well, not quite. You've still got to pay all those closing costs – typically about 2% to 6% of the cost of the home (that's anywhere from $4,000 to $12,000 on a $200,000 home). Now, no matter how you slice it, that's a considerable sum. Fortunately, you'll have some time to plan on what to expect, thanks to a handy little document called the Good Faith Estimate, or GFE."

LoanLove.com provides more information on the subject, since with the good faith estimate explained many more people will be able to take advantage of this simple document. The article goes on to say: "The GFE is a form your lender will give you, and it lists all the ESTIMATED costs you'll be paying at your closing, as well as the terms. Notice how the word "estimated" is all in caps in the previous sentence? That's because, just like the name says, the GFE is an estimate – a best guess – and that means your closing costs could be slightly higher or slightly lower than what's listed in the GFE."

Typically, a lender must provide a borrower with a GFE within three days of loan approval. That gives the buyer a decent amount of time to review the list and, sometimes, negotiate some of the costs and fees down – and also to make sure there's money on hand to handle the costs. Costs included in a good faith estimate are divided into six categories: Loan fees; items required by lender to be paid in advance; reserves; title charges; government charges; and additional charges.

The Loan Love article points out: "GFEs often have a few costs included that are not-so-lovingly referred to as "junk fees." These include things like courier costs and copying fees, and usually these items can be negotiated out or at least down. Identifying those costs early on and asking to have them chucked out is a very good reason to review your GFE as soon as you get it."

For more specifics on GFEs, please visit LoanLove.com toread the full article.
 

Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, contact@loanlove.com

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