Tales of overcharging and unscrupulous lending practices by mortgage companies are commonplace these days. Because of the financial meltdown and the part these mortgage companies played, the Federal Government has created a new tool for Buyers in order to protect them from being overcharged for loan closing costs. This tool is the 2010 GFE (Good Faith Estimate) and it is designed to give Buyers all information about the expenses for their loan at the beginning of the escrow process. Once the consumer is given the GFE, the Lender is bound by those fees and is not able to change or hide costs at the end, and this includes the costs for the escrow process as well. The new GFE 2010 form is three pages. The first page should have the seal of the US Housing and Urban Development in the upper left corner.
Alan Zukerkorn of Hawaii Mortgage Company wrote the following in his most recent update: “Here are some simple rules to remember when shopping for a mortgage: The Lender must provide you the 2010 GFE within 3 business days of your application for a loan. The lender can not require you to provide any income or asset documentation as a condition of receiving the 2010 GFE. And the most important rule to remember is other than collecting a fee for the initial credit report, the lender cannot request any other money until the seventh (7th) business day after your application day. Now is a great time to invest in Real Estate and to make certain the experience is a pleasurable one.
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