5 Things Your Loan Officer Should Tell You-Part 2
Continued—
Second, your loan officer, once you are pre-qualified for a mortgage within a specific dollar range, should provide you with a detailed Good Faith Estimate (GFE). The GFE is a federally mandated form.
It will give very specific information regarding your loan amount, proposed interest rate, term (years) of the loan, and principal and interest payment. It will give you general estimates of other loan fees. Lender fees will include amounts for processing, underwriting, wire transfer, flood certificate, etc. The closing agent (usually a real estate attorney or title company) will have fees for title insurance, deed of trust, courier and preparation of closing documents.
The GFE will also indicate fees charged by state and local government, recording of documents at local courthouse, and taxes. You should question any fees that are not explained or not listed here. Many first time home buyers don’t know that a survey is required only if requested by the lender. Those refinancing don’t know that they can save almost 50% of the cost of their title insurance if they provide a copy of their current owner’s title policy to the closing agent.
Make sure that your loan officer addresses these items with you as well. –Continued, Part 3, Loan programs