Why is a good faith estimate so important?
You never want to choose a lender solely based on the rate of your loan. There are lot of things to consider, such as origination fee or underwriting fee, transaction fee, settlement fee and closing costs. Find out what the terminology means since different lenders may use different terms. After three working days from the time you completed your loan application, you’re supposed to receive a good faith estimate of your closing costs. It’s advisable to get several good faith estimates from several lenders before making a decision. Don’t base your decision on the cost of the mortgage. There’s a lot more to consider such as the reputation of the mortgage broker or lender, as well as how much they are willing to go the extra mile for you.
