Good Faith Estimates
Sample: Based on a $100,000 purchase price with 20% down payment, 4.5% rate,no points, 30 year fixed. *seller to pay for owners title and stamps on the deed.
1) Origination charge $1245.00
2) Your credit or charge for specific interest rate chosen. $0
A. Your adjusted Origination Charges $1245
3). Required services that we select
Appraisal $375.00
Credit Report $22.50
4). Title services and lenders title insurance $500.00
5). Owners title insurance $575.00
6). Required services that you can shop for
Survey and elevation cert $325.00
7). Government recording charnges $250.00
8). Transfer taxes Buyer $440.00 & Seller $700.00
9). Initial deposit for your escrow account $650.00
10). Daily Interest Charges 15 days $150.00
11). Homeowners Insurance $1800.00
B. Your Charges for all Othr Settlement Services $5787.50
A + B Total Estimated Settlement Charges $7032.50
As you can see from above this does not give you a clear picture of what you are actually paying for. This includes all costs buyers and sellers together, does not include your down payment.
This sample the client would need to come to closing with $ 25,357.50
Monthly Payment would be: Principal and Interest $405.35
Home owners insurance $100.00
Real Estate Property Tax $150.00
________________________________
Total Monthly Payment $655.35
A good faith estimate, referred to as a GFE, must be provided by a mortgage lender or broker in the United States to a customer, as required by the Real Estate Settlement Procedures Act (RESPA). The estimate must include an itemized list of fees and costs associated with the loan and must be provided within three business days of applying for a loan.
These mortgage fees, also called settlement costs or closing costs, cover every expense associated with a home loan, including inspections, title insurance, taxes and other charges.
A good faith estimate is a standard form which is intended to be used to compare different offers (or quotes) from different lenders or brokers.
The good faith estimate is only an estimate. The final closing costs may be different, however the difference can only be 10% of the third party fees. Once a good faith estimate is issued the lender/broker cannot change the fees in the origination box.
Good Faith Estimates