good faith estimates: Mortgage Closing Costs in New Jersey – Knowing the differences
- 06/23/11 02:34 AM
Mortgage Closing Costs - The Importance of Estimating Closing Costs Estimating mortgage closing costs in New Jersey should not be a difficult task for most, but for some loan officers, they can be way off the mark. I know this because I get about three e-mails a month from borrowers that had a bad experience. Now I am seeing a trend that is scaring me, and the consumer needs to be aware. When first shopping for a mortgage in New Jersey, usually the first question that gets asked by the borrower is, “what is your interest rate.” Followed by, “what are your … (2 comments)
good faith estimates: Is the New Good Faith Estimate Good or Bad?
- 02/10/11 02:16 AM
Good Faith Estimates are suppose to give you a very good indication of what it will cost you when applying for your mortgage. The new Good faith estimates, also known as GFE’s, went into effect on January 1st, 2010 and are less complicated than the old good faith estimates. In my opinion, the problem with the new good faith estimates is that they are misleading and don’t share enough pertinent information. I truly think that the government over-steps the boundaries when it comes to protecting the consumer. But let’s explore in detail.
The good faith estimate is comprised of 3 pages. The … (8 comments)
good faith estimates: Mortgage & Real Estate RED FLAGS that consumers need to be aware of !!!
- 12/06/10 02:42 AM
Purchasing a home can sometimes be confusing and stressful, and some people in the mortgage/real estate industry will take advantage of consumers. Yes, sometimes there are problems and or issues that come up. But sometimes these problems were known ahead of time, yet never brought to anyones attention. Better yet, some of these problems should have been talked about prior to the mortgage application when the loan officer did their pre-screening of that borrower. Overall, it comes down to honesty, integrity, knowledge, very good service, and just being upfront when problems arise. First time homebuyers that have never experienced buying a home can … (28 comments)
Shopping for that best interest rate. First off, you need to be careful when using the term best, because we always want the best of anything. Remember these two old sayings? "You get what you pay for" or "If it's to good to be true, that it might not be true." Well, the same could be said when shopping for that mortgage interest rate. I read an article last week that disturbed me some, because I felt it left some important information out. It started out that you should deal with a mortgage broker instead. Here is his … (10 comments)
Wanting the best deal is usually on most peoples minds when heading into a purchase of any type. We all love deals, sales, getting the best. And sometimes to brag about such deals. Back in 1993, I still can remember a Veteran that wanted a VA loan, yet we had to try to put him into a FHA loan because of his credit. Then that became a problem because he wanted the same deal that his neighbor was getting, who was also getting a FHA loan, but I told him that he had too wait 6 months or … (20 comments)
There has been a major discussion whether or not Pre-Approval letters will be like dinosaurs, extinct. It was started with this post by Marilyn Boudreaux - Pre-Approvals Disappearing? - It was then followed by Lenn Harley's post, Calling all loan officers on Active Rain?? What are the facts here?? No Pre-Approval letters??? - After reading every comment on both posts, it sounded like some realtors just wanted to walk the plank per se. Some mentioned that Pre-Approval letters aren't worth the piece of paper that they are written on. … (29 comments)
The Main Negatives : The New Good Faith Estimate does not show : the total monthly payment. It only shows the principal, the taxes, and if mortgage insurance required. the total costs for the entire mortgage. It just shows your total estimated settlement charges, that doesn't include the down payment. a signature & date spot. Yes, this form is suppose to be given to you within 3 business days of applying for a mortgage. Read about the 6 trigger points that define the mortgage application. Yes, there are methods of tracking … (53 comments)
2010 Good Faith Estimates - Is the new form better? If so, for whom? Can it be more confusing? What is different from the new Good Faith Estimate than the old Good Faith Estimate? I will be talking about some of the pros and cons in this post. Key Point - The new Good Faith Estimate went into effect on January 1st, 2010. This form is still not 100% clear as of yet, hence why you don't see too many people writing about it. Overall, in my personal and professional opinion, I think … (32 comments)
Feeling the blues after hearing about the Mortgage Disclosure Improvement Act? (MDIA) For those that haven't heard, this act is part of the Reinvestment & Recovery Act of 2009. The MDIA became effective on July 30th, 2009. Here are a few highlights of the act that could delay real estate closings in the near future. The borrower must receive a good faith estimate and a truth in lending disclosure within 3 days of a mortgage application. (but this had already been in place by RESPA laws a long time ago) The earliest a transaction … (52 comments)
I have two major pet peeves when it comes to Good Faith Estimates. And for those that know me, I am a stickler when it comes too these 2 issues.
For those loan officers that give a borrower a rate, fees, and a payment over the phone or in a brief e-mail, yet they don't send them the actual good faith estimate. Warning - (this is just my opinion) If a loan officer pre-qualifies you and tells you your rate and total costs, they should be sending you a good faith estimate at that … (33 comments)
Shopping mortgage rates can be confusing, especially if you are dealing with a loan officer that has no integrity. It's just a sales job to them. You hear people say... Shop Rate...Shop APR (Annual Percentage Rate)….. Shop mortgage fees….. So which is it? Shopping for a mortgage can be very frustrating also to say the least. I hear so many called experts tell the average consumer to shop APR. This is not the wisest of decisions and can be argued by many professionals. Keep in mind, this is my opinion on this subject. Lets add some more confusion. Most of … (31 comments)
Good Faith Estimates - Extremely important message below!!!
If you are a consumer looking to purchase or refinance, this is a must read. It could cost you thousands if you don't pay attention. This is not a threat, but a warning from someone that has over 16 years of experience in the mortgage industry. When shopping for a mortgage, even if shopping with more than 2 lenders, you want to get a good faith estimate from everyone that you speak to.
So, here is my pet peeve. This is a major red flag - if you … (64 comments)
Dear Borrower, As most of us know, most of us in any business are here to make a profit, to make a living. There will be some that will try to make more on you and there will be many that will give you a very good to fair deal, depending on how you define these terms. But I don't know too many individuals that will do something for free, not unless things fall apart at the end and that person just wants to help you out. Yes, referrals also mean a lot to many of us.
And the borrower screamed out from on top of Mount Olympus, "I want the cheapest mortgage, with no points and no costs." The gods then just chuckled and said, No problamo, you want the infamous "no cost" mortgage or the "no closing cost" mortgage. It sounds cheap, but it comes with a higher price depending on your short and long term goals. Do you want to sell your soul to the devil? Oh, wait.... nobody asked you about those goals? hhhhmmmm - You might want to seek out someone that will explain to you the terminology and educate you … (64 comments)
Can lower mortgage interest rates play tricks on your mind? Does it help when the government advertises that they want to lower the interest rates to the low 4's? Are you sitting on the fence, waiting for these promises to happen? Here is a great example of how you might do yourself some wrong, just because one interest rate sounded better than the other.....
I was referred a client last week who wanted to do a zero point refinance, because he will only be in the house for 3 years at the most. He was originally getting … (20 comments)
Don't we all, want that best deal... My first several transactions in my second year in 1993 in the mortgage industry were interesting ones at that. I still can remember a Veteran that wanted a VA loan, yet I had to try to put him into a FHA loan because of his credit. And then that became a problem because he wanted the same deal that his neighbor was getting, who was also getting a FHA loan, but I told him that he had too wait 6 months or so. And back then, credit scores didn't even exist. … (79 comments)
FHA credit scores have changed for the most part. I just had a client tell me the other day that her loan officer, who she knows and trusts, is trying really hard to make the loan work. Okay, so what are your credit scores? "512/530/548"... rut row. And they are trying what? Trying hard? At this moment, there are only a few investors that will go below 580. But from what I know, it's really tough under 580. Most lenders are at 620 or above. There are a few at 600 and just a few that … (31 comments)
good faith estimates: Mortgage tools for those buying or refinancing....... Understanding Mortgages
- 01/25/09 11:08 AM
Shopping for a mortgage when buying your home or refinancing is not as easy as some of you think. First off, you should get yourself pre-qualfied at least 3 to 6 months before you actually go out and look for a home. Especially if your credit is less than perfect. Secondly, you need to make sure that you are dealing with a mortgage professional. Yes, it's good to be referred to someone. But just a fyi, that doesn't mean that they might be the best for you. I could give you stories. If you don't feel comfortable, it doesn't hurt … (19 comments)
good faith estimates: Mortgage Market Reports - Interest Rates climb higher !!!!! - January 21, 2009
- 01/21/09 02:40 PM
WARNING, this is not a negative post, it's a reality check !!!! Fence sitters, your fence post might have broken from under you. If you were waiting for rates to drop to 4.0% or 4.5% because you read it in the paper or heard about it in the news, don't look back wishing. It's still a great time to purchase or to refinance. Just get it out of your mind, what you could have had. Don't worry, not many did, because it wasn't around for more than a week or so. Reality.... even the best of the best can't predict … (35 comments)
good faith estimates: Good Faith Estimates -- Knowing the basics - A must read !!!
- 10/12/08 04:36 PM
Good Faith Estimates -- Such an extremely vital part when shopping for a mortgage. Yes, rate is some what important, but seems to be the primary focus so many times. Not to sound rude or out of character, but a monkey can quote a rate. And I am dead serious about this. For any of you in the process of buying a home or refinancing your current mortgage, this is a must read. I have been in the mortgage industry for over 16 years and this subject has to be my biggest pet peeve out there. I have written about … (67 comments)
I just want to educate people about mortgages and the process.
In regards to lending, I am very creative, intuitive, honest, and one who communicates information, may it be good or bad. I am a loan officer that looks out for your best interest.
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