When it comes to securing a loan, the good-faith estimate is a three-page form. The good-faith estimate is primarily used to encourage price shopping when it comes to mortgage loans and settlement services, enabling you to determine the best mortgage deal for you.In terms of content, the form displays the loan terms and settlement charges you will pay if you decide to proceed with a given loan. Furthermore, some charges can be changed prior to the loan's beginning, whereas others must remain the same. The most helpful feature is the "shopping cart" on the form, allowing you to instantly compare multiple loans and settlement costs.
Ultimately, the good-faith estimate may be provided by either a mortgage broker or a mortgage lender. Prior to receiving the report, the loan originators can only charge you for a credit report.
That said, they are unable to charge you additional fees, such as appraisals and inspections prior to the estimate.
For the loan originator to provide a good-faith estimate, he/she will need the following:
- Name
- Social Security Number
- Gross Monthly Income
- Property Address
- Estimated Property Value
- Prospective Amount of Mortgage Loan
For more information on good-faith estimates, contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.
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