Applying for a home loan and getting a mortgage is an expensive process. To get the best rates for you, you will need to know what you are paying for. That is where a good faith estimate comes in.
A good faith estimate is a form that a lender will provide you that lists the basic information about the terms and fees of that specific lender. Here is what you need to know:
Compare The Offers Of Different Lenders
Each lender will have different fees and costs. A good faith estimate offers the opportunity to compare different mortgage lenders and their rates. A lender is required by law to give you a good faith estimate within 3 days of receiving your mortgage application.
Remember, you do not have to accept a loan just because you have received a good faith estimate.
Understand The Real Cost Of The Loan
The cost of a loan is more than just how much you will pay per month. It also includes fees and other costs such as:
- Appraisal fees
- Origination fees
- Application fees
- Title search and title insurance
Remember, the fees shown in a good faith estimate are what you can expect to pay. They may change based on the title company you choose, among other fees you can negotiate.
Identify & Dispute Junk Fees
Identifying and disputing junk fees in your good faith estimate can save you hundreds of dollars. For example, origination and broker fees are the same thing and should not be listed as separate charges. If you see a charge you are unsure about, ask your lender about it.
Getting a professional, reputable real estate agent is a boon in helping guide you through the home purchasing process. The experts in the Merchant of Homes team will answer any questions you may have, as well as keep you safe from scams.