New_HUD_GFE_010510
New HUD Disclosures
On January 1, 2010, Mortgage Companies are required to start using the new GFE disclosure statement. This new Good Faith Estimate (GFE) disclosure will give borrowers a breakdown of the cost of their home loan. The GFE has many different sections which break down the cost from the Lender, the Title Company, and Third Party Companies like appraisers and surveyors.
The New GFE statement also has many important dates on the disclosure including on how the rate on the GFE is good for. It is still important to talk with your loan consultant to make sure that your rate is locked or not.
HUD also announces that each client will receive the HUD settlement booklet, which breaks down the new GFE to the client. This booklet must be delivered by the mortgage company to the client with the new GFE.
The new GFE does make it easier for clients to see what the mortgage company is charging and the rate quoted. Keep in mind that the lender only has control over their fees and that the title company and third party charges are still estimates. The new GFE does require lenders to be within a 10% range of third party charges.
For more questions about the new GFE, please contact our office.
Texas Home Loan Team
at 1st Advantage Mortgage
1000 Ballpark Way Ste 210
Arlington, TX 76011
Tel: 817-804-4960
Email: info@texashomeloanteam.com
Website: www.txmortgagespecials.com
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