How To Avoid Nasty Mortgage Junk Fees

How To Avoid Nasty Mortgage Junk Fees

How to​ Avoid Nasty Mortgage Junk Fees
So,​ you've taken an​ application with a​ mortgage broker .​
He has told you​ your monthly payment and the​ total amount you​ will need at​ the​ time of​ closing .​
How do you​ know the​ charges on​ the​ loan are fair? How do you​ compare this loan to​ others you​ have been offered?
Check the​ GFE .​

The Good Faith Estimate (GFE) can be your weapon to​ get the​ fairest price for your loan .​
If you​ don’t take a​ good long look at​ this infinitely important legal-sized piece of​ paper,​ you​ may just be throwing your money away .​

This single document will detail every specific charge on​ your loan .​
Not only does it​ list your charges,​ it​ also itemizes them to​ show whom these charges are being paid to​ .​
Don’t just look at​ the​ dollar figures on​ this form .​
you​ should pay close attention to​ the​ party that collects those dollars .​
While the​ big number on​ the​ bottom is​ often scary,​ seeing all the​ people that came together to​ make this happen for you​ may make it​ all seem worthwhile.
You can use this breakdown to​ make sure that each party that collects a​ fee is​ being reasonable .​
you​ can compare apples-to-apples because all Good Faith Estimates must contain the​ same information .​
Also,​ make sure that what you​ have is​ a​ Good Faith Estimate and not just a​ summary of​ costs that the​ mortgage broker put together .​
They may leave some things out but the​ GFE keeps them in​ line because they are required by the​ government to​ disclose all fees to​ you.
Your realtor may also give you​ a​ fee summary .​
Do not trust this form .​
They do this to​ give you​ an​ idea about fees and costs but they don't have the​ information from the​ lender necessary to​ give an​ accurate quote .​
you​ can only get a​ Good Faith Estimate from a​ mortgage company.
Since all fees are disclosed in​ black and white on​ the​ GFE,​ this makes it​ a​ great tool to​ compare mortgages .​
More importantly,​ it​ makes it​ impossible for a​ dishonest mortgage broker to​ sneak unexplainable charges into your loan .​
a​ mortgage broker or​ bank is​ obligated to​ give you​ a​ GFE very soon after application .​
Take advantage of​ this to​ make sure you​ are comfortable with the​ fees being presented.
My best suggestion to​ you​ as​ a​ homebuyer is​ to​ hold on​ to​ the​ original signed copy of​ your GFE .​
This document can be easily compared to​ the​ final papers that you​ will sign at​ closing .​
you​ will notice any changes between these forms because they are set up very similarly .​
Keep in​ mind that the​ numbers will change,​ that’s the​ nature of​ an​ estimate,​ however your broker should be able to​ explain any noticeably large changes.

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