The Consumer Financial Protection Bureau is in charge of overseeing and enforcing regulations relating to finances. The Real Estate Settlement Procedures Act (RESPA) is a federal law that relates to property and mortgage transactions. One of the regulations under RESPA is the requirement that a Good Faith Estimate (GFE) be sent to all buyers who apply for a loan. This article gives information on mortgage good faith estimates for Franklin, TN property purchases.
Good Faith Estimate Defined
A Good Faith Estimate includes closing costs, loan rates, and other costs related to receiving a loan from a mortgage company. It is meant to permit home purchasers to analyze options provided by multiple mortgage companies. It also outlines the total charges involved with acquiring a mortgage. Lenders are obligated to supply a Good Faith Estimate within 3 days of a mortgage application.
What Can Vary With Good Faith Estimates
Various items in GFEs are determined directly by a mortgage company. Other items (such as filing fees) are determined by municipalities where the paperwork is filed. Lender controlled items, such as underwriting costs, vary from one company to another. You will notice those differences by comparing different lender GFEs. Keep in mind that a GFE is only an estimate based on facts available during the loan application. Some charges may not increase, some can change by a limited percentage, and others may be driven by your loan amount or other factors. Ask your loan officer about which costs are most expected to increase or decrease if you are worried about the final figures.
Making Sense of Mortgage Good Faith Estimates For Franklin, TN Property Purchases
Although GFE forms have been improved over recent years, they can still be a bit complex to understand. Ask your loan officer or attorney to explain the details in the GFE. Make sure that you understand it prior to moving forward with a specific loan. If you would like to be referred to a local lender for guidance on mortgage good faith estimates for Franklin, TN property purchases, contact Jim Eaton at Blueprint Realty, Inc.
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