This document acts as an approximate, yet detailed, summary of what you could expect money-wise at closing. The costs disclosed on Good Faith Estimate (GFE) are basically divided into 3 categories:
- Lender-specific rates, payments and fees: These are figures which are controlled
by us, the lender. Use this section to carefully compare us against the competition's
rates, payments and charges.
- Fees for required services: These are estimated fees for services being performed
by third parties. As with all lenders, we don't have control of these fees so consider
the quote our most-educated guess based on our experience and knowledge.
- Prepaid items: These costs include interim interest, and prorations and escrows
for taxes and insurance. Since so many of these charges are dependent on when the
loan actually closes and a number of other variables, this section of the Good Faith
Estimate (GFE) shouldn't be relied upon when comparing costs.
Essentially, the Good Faith Estimate (GFE) form takes into account the specifics
of the prospective loan and lists an average monthly mortgage payment plus an itemized
summary of approximate costs and expenses that you would owe if you closed on the
home – better known as closing costs. Our Closing Costs page can give you
a good idea of all the costs that the Good Faith Estimate (GFE) will list.
It's key to note that even though the Good Faith Estimate (GFE) is an industry-standardized
estimate, the figures that you see in the form may end up being different –
very different – than those you'll be presented with when you sit down at
closing. As we discussed above, the reason for this is that closing costs, lawyers'
fees, investor charges, and other factors may not be determined or controlled by
the lender and could very well change between the time the Good Faith Estimate (GFE)
is generated and when your closing actually takes place. However, we here at Refinance.com
do everything we can to keep the Good Faith Estimate (GFE) numbers consistent, and
if they change, we promise that you'll be the first to know what they are and why
they changed.
The great thing to remember is that since the Good Faith Estimate (GFE) is a standardized
form, it's a fantastic way to compare different offers from different lenders. Make
sure to do a thorough comparison of the different Good Faith Estimates (GFEs) to
get a true gauge of items such as loan origination fees and loan discounts, which
are generally a tradeoff for a higher or lower interest rate. This form is your
best opportunity to see the clearest picture of the differences between lenders'
offerings.
If you have any questions or if you're ready to take the next step and apply for
a loan, give us a call at 1-800-734-REFI. Our lending experts are ready and waiting
to give the information you need and the customer service you deserve.
