Below are some important points to know:

1.  All fees paid to the lender/broker are to be consolidated in one line, including processing fees, origination fees, etc. These charges cannot change from the original estimate without a material change to the loan requested.

2.  In the event fees are being charged to obtain a lower rate, these are to be broken out and itemized for the borrower’s ease of comparison to other loan programs.

3.  Estimates for fees from government recording charges and third party settlement providers we suggest are to be itemized and the lender is held to a tolerance of 10% for their accuracy. In the event the estimated charges exceed the amount listed by the allowable tolerance, the lender will be responsible for making up the difference.

4.Estimates for services that the buyer can shop for and do choose can change at settlement without the lender being held accountable. This can include title charges, homeowner’s insurance, and initial deposits for an escrow account.

5.  Owner’s title policy must be included on the GFE as a borrower cost, regardless of who is paying for it. Therefore, the Good Faith Estimate of cost will appear very high.

6.  There is no cash to close estimate and there is no total payment shown on the GFE.

Now here is an important point to watch for.  Many lenders instead of giving out the OFFICIAL GFE are giving out what they are calling a Closing Cost Estimate or Closing Cost Analysis.  Neither of these is the official GFE.  Lenders who give these out in lieu of the GFE do not have to guarantee the fees that are shown. At some point Lenders do have to give you the GFE but if they wait to long they then have you the buyer over a barrel.  Please click on the link above, the new GFE, to see what the real one actually looks like.  If you are working with a lender and they have not given this to you then you need to contact them immediately.

If you are not sure what your lender has given you or if you are interested in Homes for sale in Frisco, Plano, Allen, McKinney and the Surrounding Area then TEAM DECELL is who you need to call.  We are your home town experts. 214-975-3210.  TEAM DECELL works with local lenders that we know are reputable and are not trying to take advantage of the unsuspecting buyer.