Good Faith Estimate Closing Costs Explained In New Loan Love Article

SAN DIEGO, July 25, 2013 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A recently posted article on the website continues to offer the best advice by explaining what mortgage good faith estimate closing costs are and how they can negotiate some of these fees.

The Loan Love article says: "It's finally over: All those hours spent searching for the perfect home, shopping around for mortgages and running different scenarios on a mortgage calculator are finally behind you. You've got your loan and found your house – all that's left is the closing. Sign a few papers, grab the keys and the house is yours. Well, not quite. You've still got to pay all those closing costs – typically about 2% to 6% of the cost of the home (that's anywhere from $4,000 to $12,000 on a $200,000 home). Now, no matter how you slice it, that's a considerable sum. Fortunately, you'll have some time to plan on what to expect, thanks to a handy little document called the Good Faith Estimate, or GFE."

"The GFE is a form your lender will give you, and it lists all the ESTIMATED costs you'll be paying at your closing, as well as the terms. Notice how the word "estimated" is all in caps in the previous sentence? That's because, just like the name says, the GFE is an estimate – a best guess – and that means your closing costs could be slightly higher or slightly lower than what's listed in the GFE."

With a mortgage GFE explained like this, borrowers will be able to take advantage of this simple document to ensure that they are getting the best loan deal. The GFE is usually given within 3 days of the loan's approval and this gives the borrower time to look over the estimated costs, possibly negotiate some of the fees, and also make sure that they have enough money on hand to handle the costs and fees of closing on a home loan. The Loan Love article also says:

"GFEs often have a few costs included that are not-so-lovingly referred to as "junk fees." These include things like courier costs and copying fees, and usually these items can be negotiated out or at least down. Identifying those costs early on and asking to have them chucked out is a very good reason to review your GFE as soon as you get it."

For more specifics on the fees included in a good faith estimate, please visit LoanLove.com to read the full article. 

Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, contact@loanlove.com

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SOURCE LoanLove.com



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