The Good Faith Estimate Aspect of the Loan Application
For most homebuyers, a mortgage payment is the most
critical financial decision a person will ever make.
Aside from choosing a fifteen or thirty year mortgage
loan, there are very important evaluations that should
be considered. Making a correct or incorrect decision
when signing a loan or Good Faith Estimate can be the
difference in save thousand of dollars in interest paid.
The Good Faith Estimate is verisimilar to a fairy mortgage
approval. Specific information is detailed to delineate
the cost of obtaining a loan:
APR The annual percentage rate or APR is an ideal way
to compare mortgage lenders loans equivocally. The APR
demarcates the cost of credit on a yearly rate, as well
as, any additional fees, points and additional interest
Points and fees Fees and points will vary immensely
from lender to lender. Always, look for hidden fees.
Ask any mortgage broker to disclose all fees (loan origination,
title transfer, escrow, et cetera). Determine what is
charged and what exactly is included in the quoted fee.
Loan application commitment Prior to signing on the
mortgage dotted line, ask the lender how long he | she
will guarantee the offered interest rate. Obtain all
commitments in writing to prevent agreeing to bait and
switch mortgage transaction.
Time span for funding the loan application Request
the time it will take for the loan to be approved. The
loan application process or approval and the funding
time should be a key consideration. The reasoning being,
a homebuyer should not a prospect for a new home if
it is anticipated that the lender will take an extended
period to fund a mortgage loan. A lender has the propensity
to fund a loan within ten days of its origination.
The reputation of the lender should be another major
determining factor. Relying on a lender based on a recommendation,
alone is not the best way to choose a mortgage loan
provider. Selecting the best loan is achieved when a
consumer can trust that the mortgage broker will find
a loan that fits their needs.