Comments on: Good Faith Estimate Secrets http://www.refiadvisor.com/pblog/mortgage-tutorial/good-faith-estimate/ Expert Mortgage Refinancing Advice You Can Trust Sat, 11 Feb 2012 02:15:20 +0000 hourly 1 http://wordpress.org/?v= By: Craig Ballhagen http://www.refiadvisor.com/pblog/mortgage-tutorial/good-faith-estimate/#comment-5950 Craig Ballhagen Tue, 04 Aug 2009 21:29:29 +0000 http://www.refiadvisor.com/pblog/mortgage-tutorial/good-faith-estimate/#comment-5950 More consumers need to know all about GFE's and how they are put together. I always encourge home buyers to take control and fully understand their GFE. Thanks for your blog More consumers need to know all about GFE's and how they are put together. I always encourge home buyers to take control and fully understand their GFE. Thanks for your blog

]]> By: Robert Regehr http://www.refiadvisor.com/pblog/mortgage-tutorial/good-faith-estimate/#comment-3830 Robert Regehr Thu, 13 Sep 2007 10:17:55 +0000 http://www.refiadvisor.com/pblog/mortgage-tutorial/good-faith-estimate/#comment-3830 Thanks for your comments, you bring up some great points. One thing I tell my visitors is to avoid banks completely when it comes to home loans. Banks are exempt from the Real Estate Settlement Procedures Act and they are not required to disclose anything about their profit margins or markup of your mortgage. Why go with a lender that doesn't have to play by the rules? As for <strong>Wells Fargo Mortgage</strong>, they've pretty much written the book on predatory lending practices and taking advantage of their customers. Wellsfargo and countrywide are partly responsible for the mess we're in right now. Brokers are getting a bad name; however, the industry is getting a bad name overall. People talk about buyer beware when buying a used car...used car salesman have nothing compared to some of the shady mortgage deals you read about coming out of Wellsfargo and Countrywide Home Loans. Thanks for your comments, you bring up some great points. One thing I tell my visitors is to avoid banks completely when it comes to home loans. Banks are exempt from the Real Estate Settlement Procedures Act and they are not required to disclose anything about their profit margins or markup of your mortgage. Why go with a lender that doesn't have to play by the rules? As for Wells Fargo Mortgage, they've pretty much written the book on predatory lending practices and taking advantage of their customers. Wellsfargo and countrywide are partly responsible for the mess we're in right now. Brokers are getting a bad name; however, the industry is getting a bad name overall. People talk about buyer beware when buying a used car…used car salesman have nothing compared to some of the shady mortgage deals you read about coming out of Wellsfargo and Countrywide Home Loans.

]]> By: Robert A http://www.refiadvisor.com/pblog/mortgage-tutorial/good-faith-estimate/#comment-3825 Robert A Wed, 12 Sep 2007 12:56:04 +0000 http://www.refiadvisor.com/pblog/mortgage-tutorial/good-faith-estimate/#comment-3825 I agree that there should not be a rate lock fee. But if a broker locks a rate with one bank and finds a better rate at another, some banks will charge fees for locking a rate that never turns into a funded loan. A one point fee is a fair charge. Keep in mind that banks such as B of A, Chase, Wells Fargo, etc may not be able to give you a loan as financially beneficial as mortgage broker that has several banks at their disposal. You also need to speak to the lending institution about yield spread and prepayment penalties. Prepayment penalties should be avoided in most, if not all, cases if possible. If a company offers a no point or a no closing cost loan, be careful of doing business with that institution. It can often end up much more costly over the life of the loan than one that has intial fees from the beginning. Have the professional discuss scenarios for staying in the loan for two, three, five, ten, or thirty years and see which makes the most economic sense for your financial situation. Unfortunately, brokers are getting a bad reputation, because many brokers(and direct lenders alike) in the industry believe in making as much money as possible off each client and not building a relationship where they are looking out for their clients best interests. My suggestion is to inquire at your bank and a mortgatge broker. Make sure they have a detailed understanding of your situation. We often refer to loan officers( loan specialists, mortgage specialists, mortgage officers) as order takers. They are not looking out for the clients best interests. They are either trying to put the most money possible in their own pocket or they simply are not educated enough in the industry. Feel free to call and ask any questions you may have. I agree that there should not be a rate lock fee. But if a broker locks a rate with one bank and finds a better rate at another, some banks will charge fees for locking a rate that never turns into a funded loan. A one point fee is a fair charge. Keep in mind that banks such as B of A, Chase, Wells Fargo, etc may not be able to give you a loan as financially beneficial as mortgage broker that has several banks at their disposal. You also need to speak to the lending institution about yield spread and prepayment penalties. Prepayment penalties should be avoided in most, if not all, cases if possible. If a company offers a no point or a no closing cost loan, be careful of doing business with that institution. It can often end up much more costly over the life of the loan than one that has intial fees from the beginning. Have the professional discuss scenarios for staying in the loan for two, three, five, ten, or thirty years and see which makes the most economic sense for your financial situation. Unfortunately, brokers are getting a bad reputation, because many brokers(and direct lenders alike) in the industry believe in making as much money as possible off each client and not building a relationship where they are looking out for their clients best interests.

My suggestion is to inquire at your bank and a mortgatge broker. Make sure they have a detailed understanding of your situation. We often refer to loan officers( loan specialists, mortgage specialists, mortgage officers) as order takers. They are not looking out for the clients best interests. They are either trying to put the most money possible in their own pocket or they simply are not educated enough in the industry. Feel free to call and ask any questions you may have.

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