The Consumer Financial Protection Bureau is responsible for overseeing and applying regulations relating to monetary transactions. The Real Estate Settlement Procedures Act (RESPA) is a federal regulation that specifically concerns real estate and loan transactions, including mortgages. One of the guidelines under RESPA is the stipulation that a Good Faith Estimate (GFE) be supplied to all parties who apply for a mortgage. This blog gives facts on home loan good faith estimates for Palm Beach FL real estate buyers.
Definition of a Good Faith Estimate
A Good Faith Estimate details closing costs, loan rates, and additional expenses associated with receiving a mortgage from a particular mortgage company. It is meant to permit real estate buyers to evaluate programs provided by different lenders and to disclose the overall costs connected with getting a loan. Lenders are required to supply a GFE within 3 days of a loan application.
What Can Vary In Good Faith Estimates
Certain costs in GFEs are controlled individually by a mortgage company while others (such as filing costs) are set by municipalities where the documents is recorded. Mortgage company determined items, such as underwriting costs, vary from one company to another and comparing GFEs is how you will understand those variations. Keep in mind that a GFE is simply an estimate based on facts relevant at the time of the mortgage application. Some charges may not increase, some can increase by a maximum allowable percentage, and others can be based on your closing date or other factors. Ask your mortgage professional about which line items can change if you are concerned about increases.
Interpreting Home Loan Good Faith Estimates For Palm Beach FL Real Estate Buyers
Even though GFE documents have been improved in recent years, it can still be somewhat complex to understand. Ask your loan officer or legal professional to explain the details in the GFE and make sure that you understand it prior to moving ahead with a specific loan. If you would like to be referred to a local mortgage professional for advice on home loan good faith estimates for Palm Beach FL real estate buyers, contact (Broker Associate at The Keyes Company) at 561-247-1047 or sonny@sonnysolomon.com.
