The Consumer Financial Protection Bureau is in charge of administering and applying regulations pertaining to monetary transactions. The Real Estate Settlement Procedures Act (RESPA) is a federal law that specifically concerns real estate and loan transactions, including mortgages. One of the guidelines by RESPA is the requirement that a Good Faith Estimate (GFE) be provided to all customers who attempt to obtain a loan. This blog offers facts on mortgage good faith estimates for MA property buyers.
Good Faith Estimate Defined
A Good Faith Estimate details closing costs, interest charges, and additional expenses related to receiving a home loan from a certain lender. It is intended to allow property purchasers to evaluate options provided by different mortgage companies and to disclose the total costs connected with obtaining a loan. Mortgage companies are obligated to furnish a Good Faith Estimate within 3 days of a mortgage application.
Differences In Good Faith Estimates
Certain charges in GFEs are controlled directly by a mortgage company while others (such as recording costs) are directed by municipalities where the paperwork is recorded. Lender controlled items, such as underwriting charges, differ from one lender to another and comparing GFEs is how you will notice those differences. Keep in mind that a GFE is merely an estimate based on facts relevant during the loan application. Some items must stay the same, some can increase by a limited percentage, and others may be driven by your closing date or other factors. Ask your mortgage professional about which costs are most likely to increase or decrease if you are worried about the final figures.
Understanding Mortgage Good Faith Estimates For MA Property Buyers
Even though GFE templates have been updated over recent years, it may still be a little complicated to understand. Ask your mortgage professional or legal counsel to explain the figures in the GFE and make sure that you understand it prior to moving forward with a particular loan. For further advice on mortgage good faith estimates for MA property buyers and assistance with your mortgage needs, contact Christopher Graves at Emery Federal Credit Union by calling 781-759-1200 x22 or emailing email@example.com.