Reviewing Your Good Faith Estimate

Reviewing Your Good Faith Estimate

Two major things should happen when you apply for a mortgage to buy a home: (1) you should get a good faith estimate of your fees and (2) you should speak to more than one lender and compare the different good faith estimates that you get. The review of your fees for a mortgage is important as the mortgage program and who you get it from will play an important role in your financial future for years to come. Here are some key tips to make sure that everything goes smoothly with your Good Faith Estimate.

  • Review
  • Verify
  • Ask

Review

Reviewing your mortgage good faith estimate is quite a bit different than a reviews of StorageMart and their fee contract; for example if you are planning on storing your personal belongings in a storage facility while you transition into a new home. Before getting a Good Faith Estimate, understand these differences.

Verify

What you need to be careful of is that you actually do get a Good Faith Estimate from your lender versus just an informal estimate of closing costs. A Good Faith Estimate will be the result of applying for a mortgage whereas having an informal conversation with a loan officer about what you can qualify for may only get you an estimate of closing costs. Make sure that you know that a Good Faith Estimate is not the same as an estimate of closing costs.

Ask

That said, when you apply for a mortgage the lender is supposed to send you a Good Faith Estimate within 3 days of your loan application. To ensure that you get the Good Faith Estimate you should specifically ask your loan officer for one. While your loan officer will take care of the Good Faith Estimate, it is up to you to make sure that communicate to your loan officer that you want to get a Good Faith Estimate.

Follow Through

The Good Faith Estimate comes with some federal guidelines that lenders must follow when it comes to the fees, loan programs and interest rates that you are quoting and expecting to get when you sign your mortgage documents. Once you get your GFE, you can then hold your loan officer to the test somewhat when it comes to the fees and interest rate that you are expecting as you navigate your way through the loan process to your loan closing.

This site is for informational purposes only. It is not sponsored or in any way affiliated with the government. If you are in need of a mortgage loan, consult with a licensed mortgage professional. All fair housing and equal housing opportunity laws apply when applying for a mortgage or buying a home. Copyright 2012.