The Consumer Financial Protection Bureau is responsible for overseeing and enforcing laws pertaining to monetary transactions. The Real Estate Settlement Procedures Act (RESPA) is a federal law that specifically pertains to property and loan proceedings, including mortgages. One of the guidelines by RESPA is the stipulation that a Good Faith Estimate (GFE) be provided to all customers who attempt to obtain a loan. This article provides information on lender good faith estimates for Waltham MA real estate buyers.
Good Faith Estimate Defined
A Good Faith Estimate includes closing costs, loan rates, and additional expenses pertaining to acquiring a home loan from a certain mortgage company. It is meant to permit property purchasers to compare programs provided by different lenders and to outline the overall charges involved with getting a mortgage. Lenders are obligated to furnish a GFE within 3 days of a loan application.
What Can Vary With Good Faith Estimates
Some fees in GFEs are determined directly by a lender while others (such as recording charges) are decided by municipalities where the documents is filed. Lender controlled items, such as underwriting charges, differ from one company to another and reviewing GFEs is how you can understand those differences. Remember that a GFE is only an estimate calculated by information available at the time of the mortgage application. Some charges may not increase, some can change by a maximum allowable percentage, and others can vary depending on your purchase price and other factors. Ask your loan officer about which costs are most expected to increase or decrease if you are concerned about potential modifications.
Understanding Lender Good Faith Estimates For Waltham MA Real Estate Buyers
Even though GFE forms have been amended during recent years, it may still be a bit complicated to understand. Ask your mortgage professional or lawyer to go over the figures in the GFE and make sure that you understand it prior to moving forward with a particular loan. If you wish to be contacted by a local mortgage professional for guidance on lender good faith estimates for Waltham MA real estate buyers, contact Bradford Pratt at REMAX on the Charles at 781-316-5760 or firstname.lastname@example.org.