I have been a loan officer for over a decade, so needless to say I have handled a lot of forms. Loan officers have many responsibilities and one the most important is helping propective homebuyers understand the costs and fees of buying a home.
Does the new Good Faith Estimate make it easier for a homebuyer to understand what they are doing?
Like most questions the answer is not 100% yes or no. There are some definite advantages to the new form, but let me point out a few shortcomings that lenders, realtors and homebuyers should be looking out for...
#1. It is longer and more wordy... the bottomline with loan disclosures is the longer you make them the less likely people are to read and understand them.
#2. It doesn't provide a comprehensive breakdown on the fees, credits and totals that borrowers look for in order to know how much money they need for closing. A borrower can thoroughly read this form and still be clueless as to how much money they need at closing!
#3. It makes lenders more reluctant to serve the customer. I already have a loan in processing becuase the customer's credit union would do a pre-qualification due to confusion over the new form.
If you have questions about the new form, please give me a call anytime at 980-721-7478. You can visit my website at www.charlottemortgageonline.com to start the homebuying process.
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