Post-Good Faith Estimate

Previously, we defined a good-faith estimate, which you can read about here. But what do you do after receiving your estimate?

Since good faith estimates promote price shopping, it’s best to obtain several estimates. Once you've compared several good-faith estimates, it's time for you to sit down and select the best-suited loan option. Following this, notify your loan originator of your intention to proceed with their option.

Throughout this process, it's important to hold onto your good faith estimate. This will enable you to compare the estimate with final costs, providing insights into where those costs may have fluctuated.

Despite what the forms say, inquire with both your mortgage lender and your settlement agent in regards to any changes between the good faith estimate and your HUD-1 Settlement Statement.
Also, keep in mind that a good faith estimate is just that: an estimate. So, your final costs can be affected by numerous variables.

As an example, for those purchasing a new home that is either being built or hasn't been built at the time of receiving the good faith estimate, the costs may change. In this event, the loan originator must notify you up to 60 days before the settlement. With altered costs, it's vital that you reevaluate whether or not this loan is ideal for your circumstances.

Additionally, your personal circumstances may be subject to change as well. Changes could include a different credit score, the loan amount, the property value, or other information that was relied on when issuing the good faith estimate was initially presented. When this happens, you may receive a revised good faith estimate. Ultimately, only these additional charges may be later altered.

For additional information on good faith estimates, contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.