A Good Faith Estimate, or GFE, as it’s known by it’s Realtor lingo, is an estimate from the lender on what your total payment will be when you buy the house. There are some very important things to know about this GFE:
1) The main thing to know is that it’s negotiable. And we’ll give you tips to negotiate it. Just because the lender gives you a certain GFE doesn’t mean that the rates are set in stone.
2) It’s called an “Estimate” because it’s just that - an estimate. The lender is estimating the settlement costs, but the lender really only has control over his fees, like the appraisal, discount points, etc., meaning that when he estimates the taxes, or settlement fees, etc., those numbers could (and probably will) change. To better understand the difference between the lender and the settlement company, click here.
We’ve attached a sample GFE from one lender. One thing to note is that our company doesn’t charge an administrative fee. Most real estate firms charge a $200 to $500 “administrative” fee to you, the buyer. We think that’s hogwash. The seller is already paying us a commission - why do you also have to pay us a fee, too? To learn more about other differences between us & other firms, click here.
P.S. - if you’re a lender and you’d like to send us one of your GFE’s to be posted here, just send us an email to info@DROdio.com. We’ll be happy to post it if we think it’s a good sample.
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