The Department of Housing and Urban Development recently released the new Good Faith Estimate that all lenders will be required to use on January 1, 2010. Before you start pounding your head against the wall saying, “Why, Why, Why?,” this new form is a dramatic improvement from what lenders have been showing borrowers in the past. As a result, lenders and mortgage brokers will not be able to hide their fees and be able explain the entire good faith breakdown to their perspective clients.
The new Good Faith Estimate is three pages long and the new helpful sections include:
This new Good Faith Estimate is transparent and can easily be understood by borrowers. Gone are the days when a lender will be able to put a hidden fee on the closing statement. Now, everything has to be disclosed and properly explained in detail to all potential buyers. Our team works with mortgage professionals that are dedicated to their profession and are now using this new estimate guideline. I am confident that this new standard will help the local Parkland real estate and mortgage business by now providing clear explanations of all of the fees before clients get to the closing table. Our clients will be more informed as soon as they start the home buying process. As a result, we, as Realtors, can now focus our efforts on helping our clients find the best homes on the market!
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If you are interested in buying or selling real estate in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.