New Good Faith Estimate 2010 Form #2

In my introductory Post to the New Good Faith Estimate 2010 Form, I left out a three important things that the New Good Faith Estimate 2010 Form does not include, they are:

• It includes the Principle & Interest, PMI, or FHA MI in the monthly payment, but it does not include the Taxes, and Homeowners Insurance in the monthly payment.
• It does not state the Loan Program being applied for.
• Even though the New Good Faith Estimate 2010 Form shows the total Costs, it does not give an estimate of how much money the Borrower is expected to bring to Closing.  Example of this is that Seller Paid Contributions are not included on this form, so they are not reduced from the Total Costs.

Today what I want to do is to list the three categories of costs that may or may not change once the New Good Faith Estimate 2010 is issued.  These three categories are costs that Cannot Change, cost that Can Change by 10%, and costs that can Change at Settlement.

• Costs That Cannot Change (0% tolerance):
  • Origination Charges.
    
  • Credit or charge (points) for the specific interest rate chosen (after the rate is locked) 
    
  • Adjusted Origination Charge (after the rate is locked)
    
  • Transfer Taxes.  

• Costs That Can Change By 10%:
  • Required Services that the Lender Selects.
  • Tile Services or Lender's Title Insurance (if the Lender selects them or identifies the companies)
  • Owner's Title Insurance (if the borrower uses the companies the Lender identifies)
  • Required Services that the Borrower can shop for (if the borrower uses the companies the Lender identifies)
  • Government recording charges

• Costs That Can Change At Settlement.
  • Required Services that the Borrower can shop for (if the borrower does not use companies identified by the Lender.
  • Title Services and Lender's Title Insurance  (if the borrower does not use companies identified by the Lender.
  • Owner's Title Insurance (if the borrower does not use companies identified by the Lender.
  • Initial Deposit for Borrower's Escrow Account.Daily Interest Charges
  • Homeowner's Insurance.

My next Post will further explain some of these charges.

Links to the other blogs in this series:

New Good Faith Estimate

New Good Faith Estimate #3

 

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com