30 Days and GFE Changes
Thursday, April 01, 2010
Thirty Days. Only 30 days. That is how many days remain for you and your friends to locate and place ‘Under Contract’ a new primary home if you/they want to take advantage of the Federal Government’s Historic Tax Credit.
When you do go to the closing table to give a Seller money so he/she will give you the keys to your new abode, one of the documents you will review and endorse will be a ‘Good Faith Estimate’. “No problem, I’ve seen those before”, you say. But, wait! The government introduced a new GFE form that is longer a more complex than those of the past.
First of all, a ‘Good Faith Estimate’ summarizes the terms of the loan you obtain, gives escrow information, and lists estimated settlement charges. You are to be given this document shortly after applying for a mortgage so you can hold the lender accountable so you do not have any large ‘surprises’ at the closing table.
At the closing, a ‘new’ GFE is presented to you which should show exactly the estimates the lender gave you when you applied and the actual costs. Some of these costs should match-up exactly; others are given up to a 10% ‘adjustment allowance’.
At a closing, make sure you bring your original GFE. It may save you money!
Posted in: Intown Atlanta Real Estate News