Maryland Good Faith Estimate: It’s Part of the Deal
When you plan on getting a mortgage in Pasadena, Maryland anytime this winter, you’re fairly certain to run into something known as the GFE. It’s the acronym for ‘Good Faith Estimate’-- and despite the reassuring name, the federal government decided they had better make it mandatory (to me, the opposite of having much faith at all).
The GFE has a new format dictated by the federal Real Estate Settlement Procedures Act which requires lenders to provide an estimate of the charges and fees due at closing. Lenders have three days to make it available.
The GFE looks like a bill. It features a list of fees and charges denoted by three-digit codes. It is grouped into sections to make it more readable, and although at first glance the resulting grid looks overly complicated, after you scan through it once or twice, it actually makes sense. The reason it is a good idea is because of the number of charges that may or may not be on there. It prevents sudden last-minute cash flow surprises at closing.
Once you receive your GFE, you'll also receive a Truth in Lending (TIL) disclosure form. This gives you the annual percentage rate for your mortgage, taking into account mortgage insurance, discount points and other assorted fees.
The GFE is exactly what it says - an estimate. This isn’t so that the lender can suddenly raise the prices: there is a built-in variability to the various processes that truly cannot be guaranteed until the last ‘i’ is dotted and the last ‘t’ crossed. The figures quoted in a GFE can rise as much as 10 to 15 percent or more by closing…they can also fall. The GFE comes in quite handy when you’re getting a Pasadena mortgage because you can compare it with the final, see where any differences appear, and be assured that it all makes sense. If getting a mortgage meant waiting until closing to see what surprises appear, the moment would be much less appealing.
Getting a mortgage is an integral part of becoming a Pasadena, Maryland homeowner. Understanding the costs at every step of the way is a big part of the decision-making process – it is just one of the services every one of my clients can be sure I will provide.
The G-Team your Maryland Real Estate Connection, is a full-time team with over 22 years of experience. We provide service to our clients in all areas of Maryland. Our areas of specialty include Fort
Real Estate in Central Maryland.
We are located in Millersville, Maryland between Baltimore and Annapolis in Anne Arundel County convenient to Fort Meade. We also service Howard, Harford, Carroll & Queen Anne’s Counties and central Maryland. Whether you are BUYING, SELLING, RELOCATING or SHORT SALES.
Call us we can HELP. If you or someone you know is interested in Buying a home, Selling a home or renting a home, CALL US WE CAN HELP! We provide Experience, Integrity and Solutions to help you through the real estate process. Our website www.MarylandHomeSearchSite.com has all the information you need. It is designed to share info about the community, it’s neighborhoods, real estate trends, housing prices and the ability to create your own search for listings.
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