Mortgage Shopping: How to Compare Good Faith Estimates

When you’re in the process of buying a property and financing your purchase, you probably would like to make sure your lender is giving you a fair deal. In order to make that determination, you need to get at least two bids from different lenders. They should Home on stack of billsgive you these bids, which show the total costs and the interest rate you are eligible for, on the federally required Good Faith Estimate (GFE) form.

Theoretically, you can use the different lenders’ good faith estimates to compare the cost of financing between those lenders. This, however, is easier said than done because the costs that are most relevant to determining whether you’re getting the best deal — loan origination charges, credits and points — are mixed among other costs that are not determined by the lender. The combined costs are noted on page 2 of the GFE under “Estimated Settlement Charges.”

Read Leonard Baron’s full article on Zillow.

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About bobbyfletcherhomes

I am a licensed Realtor in the Great State of Texas, specializing in residential sales, leasing and property management in North Dallas and northern suburbs - exciting places like Frisco, McKinney, Plano, Little Elm and Carrollton.
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