Good Faith “Estimate or Actual”?

The information provided below reflects estimates of the charges which you are likely to incur at the settlement of your loan.  The fees listed are estimates-actual charges may be more or less.  Your transaction may not involve a fee for every item listed.  The numbers listed beside the estimate generally correspond to the numbered lines stated in the HUD-1 settlement statement which you will be receiving at settlement.  The HUD-1 settlement statement will show you the actual costs for items paid at settlement.

For once I think the legal stuff written here is pretty easy to read and understand!  For once, something we can all read and understand.  The title of this document and the disclaimer on the document speak for themselves “estimate”.  The fees are a best guess or an educated “guestimate” of what your mortgage broker or mortgage lender see as costs for your mortgage loan. If you have chosen a reputable mortgage company than they should have a good knowledge of your closing costs for you and your home without a lot of variance between the Good Faith Estimate and the actual HUD-1 at closing.

You should feel comfortable with at least three or so Good Faith Estimates to get an understanding of the average charges for your loan.  Make sure you compare Good Faith Estimates properly and don’t be fooled by the “non-reputable” lenders.  Keep a close eye out for any mortgage broker or mortgage lender, and make sure the fees stay the same that “they” are charging you on your Good Faith Estimate so that they transfer exactly to the HUD-1 at closing.   Remember any negotiations you have made and make sure those make it to closing as well.  Get everything in writing.