By Dustin R. Burke, Adonai Financial
Items Required by Lender to Be Paid in Advance is a section of the Good Faith Estimate that lists the items that are required to be paid in advance. The Good Faith Estimate is a RESPA required document. These items are identified with a number in the 900s. Because of the numbering this section is often called the 900 Section.
***This is a list of the most common fees listed in the 900 Section of the GFE. The fees associated with a specific loan may change. Actual fees may be more or less depending on the time of year, or even time during the month, that the loan closes.
901 - Prepaid Interest: is prepaid interest charged for the loan. This fee will vary and depend on the date of the month the loan is closed.
902 - Mortgage Insurance Premium: is prepaid mortgage insurance premium (MIP). This fee is only charged if the borrower has to pay MIP, usually charged for loans with very little equity in the property being used as collateral.
903 - Hazard Insurance Premium: is the hazard insurance, or homeowner's insurance, being prepaid. Most lenders require that the insurance policy be in force one full year from the date of closing.
These are only a sample of the most common fees and costs in the 900 Section of the GFE.
As you can imagine, there more information than I can put here. If you would like more information about fees on a GFE or items discussed in this section please send me an email to dustin.burke@adonaifinancial.com.
"Adonai Financial, your friends in the mortgage business!"
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Copyright © 2008 Dustin R Burke | All Rights Reserved
Portions Copyright © 2008 Adonai Financial Corporation | All Rights Reserved
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Adonai Financial Corporation
http://www.adonaifinancial.com/
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