Real estate agents in Sneads Ferry, break down the Good faith estimate

Have you ever heard the term "good faith"? Well, most of us have heard this term before, and we know it from everyday life when some says something to the effect "I am going to give you this job, loan, car, in ‘good faith’, but you have to do such and such for me in return."

That termactually does come from the financial industry and is a very important document in the home buying process.

So What Is a Good Faith Estimate?

A goodfaith estimate, or GFE, is a form that is given to a potential homebuyer, from their mortgage lender. This highly itemized document will provide all the details in black and white of the fees, charges, and terms and conditions of the loan a homeowner is taking out to buy a home. A GFE can also let a potential owner know how much they will have to cut a check for at closing as well. Each state varies, but for the most part, a GFE is required to be served to the home seeker within three days of receiving a loan application.

What’s the point of a GFE?

If you do not think a GFE is not very important, just ask a real estate agent in Sneads Ferry. They know and can explain to you, in great detail, that this form is necessary for providing the critical portion information about your loan. It is also really the only accurate document that allows you as a would-behomeowner, to compare your GFE with other loan offers. With a GFE in hand, you can quickly tell which loansare in your price range.

Note, the GFE, although vital, is NOT a binding contract by no means. Your real estate agents in Sneads Ferry will also remind you that you need not pay the "listed fees" in the bottom corner. The only thing that you will need to pay at this early junction is the cost to get a full credit analyst run on your consumer history. This is usually $30 or less.

Does A lender have to tell me my interest rate?

Your interest rate will already be on the GFE and "locked" in. By law, your lender is only required to let you or your real estate agents in Sneads Ferry know your "final" interest IF, the national rate changes, and it will affect your rating. Interest rates change every single day. But, you can pay a small fee to again, "lock" in that rate. Then, if the national rate changes once more, it won’t affect your rate at all. This is usually the best route to go. If you aren’t sure which way is best, your real estate agents in Sneads Ferry can make a recommendation on your behalf.

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