Good Faith Estimate are Important

Federal Law requires, under the Real Estate Settlement and Procedures Act (RESPA), that all lenders, and loan officers, within three business days of a loan application, provide borrowers with a Good Faith Estimate of Settlement Closing Costs along with a"Settlement Closing Cost Booklet".

What is a Good Faith Estimate? It is an estimate of the total closing costs for a specific type of real estate loan which is prepared by a licensed loan officer. Depending on the type of loan; i.e., purchase, refinance, debt consolidation, etc., closing cost will vary however in the client's best interest, should always be based on a worst case scenario.

Professional loan officers who honestly protect their client’s best interest include all known estimated closing costs on the Good Faith Estimate, while others choose to overlook the recurring closing costs such as home insurance, property taxes and daily interest.

As an example let’s look at a refinance where the homeowner has just recently renewed his homeowners insurance policy.  Depending on the terms of the loan, the investor may require a couple of months reserves or maybe none at all. In comparison, based on purchase loan, the buyer’s personal choice of home insurance providers and the terms of the loan, we know the lender will require a one year homeowners insurance policy prepaid by the buyer at the close of escrow.

At Inman Mortgage Group our Loan Specialist are committed to our client’s best interest and their long term success while adhering to the highest standards in the industry and consistently raising the bar!

If you're currently interested in buying, refinancing, obtaining a debt consolidation or improvement loan and need the assistance of a professional you can trust, Inman Mortgage Group is the key! Contact us today as we look forward to providing you with the personal and professional service our clients have come to expect and you deserve!