Question : How close to good faith estimate will my home loan be?
I'm just about to sign on my first home loan but want to know how close to good faith estimate will my loan be? I don't want to pay much more than what I was quoted. The loan agent at the mortgage company (referred by builder) has told me that the good faith estimate is a breakdown of what I can expect but he estimates it will be a bit lower. I don't want to lose my earnest money and money for upgrades if at closing it looks wrong.
- asked by Annie
All Answers:
Answer #1
If they can not tell you what your closing costsor payment is going to be do not sign.If you arenot getting a FHA first time home buyer rate of5.25% no closing costs and 105% LTV loan, you aregetting screwed.Buiders refer to make money.Thereshould be a similar program in yourState.****************8These programs will not letthem create all those fees at closing and requiremuch less down But, there isn't anything in thereto kick back to the builder****************8TheTexas First Time Homebuyer Program provides belowmarket interest rate mortgage loans through anetwork of participating lenders to eligiblefamilies and individuals who are purchasing theirfirst home or who have not owned a home in thepast three years. Two types of loans are availableunder this program. An “Unassisted Rate” loantypically offers our lowest interest rateavailable and does not provide funds for downpayment and closing cost assistance. For borrowersneeding assistance with their down payment, an“Assisted Rate” loan is offered toincome-eligible borrowers that provides grantfunds up to 5% of the mortgage amount. These loansare offered at a slightly higher interest rate. Wealso offer a Mortgage Credit Certificate programthat increases a family’s disposable income byreducing its federal income tax obligation. Thetax credit is valid for the life of the loan aslong as the borrower occupies the property astheir primary residence.
- answered by packinrat
Answer #2
It should be pretty close. However there arevariables that can change it - for instanceclosing on a different day of the month skews whatis due for taxes and insurance - often by severalhundred dollars. However, it should be within$150-$400.
- answered by rlloydevans
Answer #3
It should be close, however, lenders are onlyrequired to disclose an estimate of the closing,exact figures may vary at closing. Example is thetitle company has its own fees, the county orstate may have there own fees also, if there is ahomeowners association that may also have feesthat according to REPSA, the lender is notrequired to be exact on because there fees havenothing to do with the cost that the lender ischarging. The good faith should however closelycover the rate and the points, very, very close.Below is a website that covers your right underRESPA
- answered by Etta P
Answer #4
Those estimates are pretty close, within under 1%. Now if you get to closing and the builder tellsyou the upgrades cost more than you thought, tellhim no, you won't close unless he delivers thecosts you discussed.
- answered by DJ B
Answer #5
I can't think of any situation where it would goodfor a person to borrow 105% of the value of ahouse on their personal home, however I don'tthink anyone should tell you what loan programthat would be best for you without first settingdown and talking with you about your situation.Thegfe has to guess at your cost for homeownersinsurance and never includes any costs for a homeinspection (you may not be getting a homeinspection on a new home but a lot of peopledo).Once you talk to your insurance agent anddecide what your deductable will be and the otherfeatures you want, then you can plug that in andget a better guess.The loan agent suggested by thebuilder should be able to estimate everything elsevery closely since they probably work with thesame title company and builder a lot.
- answered by glenn
Answer #6
IGNORE packinrat listen to Glenn and I forgot theother 2 posters right now.Enjoy your newhome!!This is such a general statement as to beuseless but take the loan amount and see if theclosing cost are in a range of 2-3% of the loan. If it is a lot higher then take the contract to areal estate Lawyer for viewing.
- answered by P J
Answer #7
You will get the exact figures at the closingtable and you will have the opportunity towithdraw at that point. You can stop the sale atanytime before then. Make sure YOUR loan agent isthere with you to explain all the figures. Thetitle company will do this, but you need to makesure everything is good for you.
- answered by Bill P
Answer #8
At my last closing, the actual closing costs were$11 more than the GFE. Good lenders can reallynail this. Internet lenders seem to have a baitand switch game going on GFE's. I have heard of anumber of people walking away from the closingtable because their internet lender was WAY off inthe GFE. Hopefully your builder referred you tosomeone reputable and knowledgable. Since yourbuilder's reputation is on the line also, I'm sureyour lender is sharp.
- answered by godged
Answer #9
1. If you want to make comparisons using veryaccurate data, get quotes from different lendersor brokers on the same day. Mortgage quotes changedaily. At times, they even change several times inone day.2. When you compare terms, comparemortgage quotes for similar lock periods. A lockperiod is the specific span of time thatguarantees implementation of a certain rate. As arule of thumb, longer lock periods have higherrates. Lock periods are generally offered inincrements, like 15, 30, or 60 days.3. Comparemortgage quotes that have the same points, such aszero or one. In the mortgage business, a point isthe term given to a rate. Three points, forexample, means three percent. Mortgage quotesfollow a tiered pricing. This gives you theopportunity to buy the rate and bring it up ordown. How? It's very simple. To make the pointsdecrease, increase the mortgage rate. To make thepoints increase, reduce the rate.4. In the quoteyou ask for, ask that the quote loan be separatedfrom associates fees. Property taxes, homeinsurance, and pre-paid interest are not lender'sfees. What falls under lender's fees are thefollowing: standard title, appraisal fees, andprocessing or underwriting charges.5. Comparemortgage quotes of the same type. There are manytypes of mortgages. There is a buy-to-letmortgage. Then, there are also self-buildmortgage, right-to-buy mortgage, and reversemortgage. The terms of your mortgage could changealong with the type.
- answered by jeremy j
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