The Good Faith Estimate Scam

Here's the truth.

A loan officer can out right lie on the GFE.

Surprised? Don't be.
They can and some will lie to you for one reason, to get your loan.
There are a lot of bad people out there in all aspects of the real estate world, and there are a lot of good people as well.

The government had a great idea in mandating the GFE to all borrowers. Unfortunately they also some left very large loop holes.
The Good Faith Estimate does not have to be accurate - AT ALL!

Some of the most common tricks are

• Points and Fees can be grossly under estimated
  or even omitted,
• Rates can be based on extremely short
  Lock Periods,
• Intentionally quoting Programs that they know the
  borrower won't qualify,
• 3rd Party Fees can be grossly under estimated
  or even omitted,
• Prepaid Expenses (Taxes, Insurance) are often
  manipulated to their minimum,
• Title and Escrow charges can be grossly
  under estimated or even omitted.

The loan docs you sign in the end may have
absolutely no resemblance to the original
Good Faith Estimate.

Good Faith Lies

What can the consumer do?

How do you protect yourself?
How do you compare?
How do you shop?

There are so many hidden items stacked against you.
So many things that you would never know.
The best thing I can say is that still in this day and age, you have to trust your instincts.

A REAL Good Faith Estimate is based on

• a REAL Interest Rate,
• with a REAL Lock Period,
• for a REAL Loan Program,
• scheduled to close on a REAL date,
• with REAL Prepaid Estimates,
• and REAL Fees.

We prepare a REAL Good Faith Estimates for all our Clients! Not just one GFE, but a new, updated, accurate GFE every time the loan parameters change. By the time we get to the closing table you know exactly what you'll be signing!

We even Guarantee Our Closing Costs in writing! (GFE Section 800 *)

Are you ready for a REAL Good Faith Estimate?
Mike@PatagoniaFinance.com or (925) 288-9977 Ext 104

 

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