New Good Faith Estimate Beneficial For Buying A Short Sale

HUD has enacted changes in the Good Faith Estimate that start January 2010 and some much more in the spring of 2010.

The changes to the good faith estimate (GFE) are designed to assist you to in determining what sort of loan you are being quoted, what it should cost you to get it, and give you you an opportunity to examine home loan programs from multiple mortgage lenders.

Once you apply for a mortgage to purchase a short sale home you are supposed to get a good faith estimate within three business days from your mortgage lender – unless your mortgage lender declines your short sale mortgage application inside those three days.

New Modifications Towards the Good Faith Estimate

  • Stronger Disclosure – The adjustments are organized to present you with even more total disclosure from your loan officer in relation to the mortgage loan program(s), mortgage rates, factors, fees, terms, closing costs, and other vital details that your loan officer quotes you.
  • Allowable Modifications to Good Faith Estimates and Actual Closing Costs – Another main function within the new good faith estimate alterations is to spell out what fees are not allowed and what fees are allowed to switch between your quote and the actual settlement costs once they have been quoted to you by your loan officer.
  • A No Cost Home loan comparison – The brand new good faith estimate should indicate the results to getting a no cost house loan versus getting a usual mortgage loan with ordinary costs. Overall, no cost mortgages have elevated mortgage rates than those home loans having expenses.

Contact one of our Phoenix based short sale real estate agents if you are interesting in buying a short sale home in Phoenix.

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