December, 2009 New Good Faith Estimate Great for Consumers!
Set to release January 1, 2010, the new good faith estimate that the government has mandated is a great development for consumers.
No longer will dishonest mortgage brokers be able to pull scams like bait and switch tactics, or low-balling settlement fees to "earn" business. With the new good faith estimate, the quote you receive from your broker will be locked in, so you will be guaranteed the cost of your loan will not exceed the amount that was disclosed. If anything, the overall cost may come in lower, but by law cannot be higher.
This is a big improvement over the previous version of the estimate. The new GFE will allow consumers to comparison shop with confidence to find the best overall loan for their needs. The only negative is that most fees are lumped into categories so that it is difficult to determine how certain fees, such as lender origination cost, breaks down.
As always, I welcome the opportunity to provide to you an honest estimate for your scenario or help with any questions you may have about the loan process.
