What you will need to know about your Good Faith Estimate (GFE)

 

Your Good Faith Estimate provides you with all closing costs and fees (also known as settlement charges) that may be associated with your new mortgage. Your GMH Mortgage Services, LLC. Mortgage Consultant will provide you with a GFE for your review and acceptance. It is important that you carefully review your GFE and understand the information it provides. Any changes to the initial estimate provided may require us to provide you with a new GFE.

 

If you find any inaccuracies with your GFE, contact your Mortgage Consultant.

 

Understanding your GFE Page 1

 

Your name, Subject Property address and Date of GFE.

GMH Mortgage Services Corp & Your Mortgage Consultant, Address and contact information

Important Dates Section of GFE

Line Items:

 

1.     If you have locked your loan, this shows your lock expiration date. If you have not locked your loan, the Application Date of the GFE will appear on this field and the GFE will expire end of business day.

2.     This shows the date through which the disclosed settlement charges are available.

3.     If a N/A you have not locked your interest rate.

4.     If you have locked your interest rate, N/A will appear here. Otherwise you have at least 3 days to lock your loan before settlement.

Note: If your interest rate changes from the time your GFE was initially disclosed, A revised GFE will be provided.

 

 

 

Summary of Your Loan, Escrow Account Information, Summary of Settlement Charges

Summary of your loan:

This section outlines the terms of your mortgage. It indicates whether or not your interest rate, mortgage balance and/or payments can change over the life your mortgage. It also includes whether or not pre payment penalties will be applied for early mortgage payoff and if you must pay off a large balance (balloon payment) before your mortgage matures.

 

Escrow account Information

 

You may be required to have an escrow account for your mortgage. This account is used to pay for your real estate taxes, insurance and other charges on your behalf.

 

Summary of your Settlement Charges:

 

This section summarizes your settlement charges that are listed in detail on page 2. Note that the Total Estimated Settlement charges may not reflect any lender, broker or seller credits.

 

Understanding your GFE Page 2

Section A- Your Adjusted Origination Charges

 

These are fees that are controlled by GMH Mortgage Services, LLC..

 

1.     The origination charge includes all GMH Mortgage Services, LLC./broker fees excluding credits you will receive and charges you will pay (such as discount points) for the specific rate chosen.

 

2.     This shows the credit or charge for a specific interest rate chosen.

 

 

Section B- Your Charges for all Other Settlement Services

This section includes settlement charges that GMH Mortgage Services, LLC. select, and other settlement charges for which you may be able to shop. Note the following about sections #4 & #5 and #11:

 

            #4 & #5- You may shop for these services.

           

            #11- We provided and estimate of your applicable insurance, premiums, such as homeowners insurance. Prior to closing , you’ll be required to provide proof of insurance and the actual cost of the policy (ies).

 

 

Understanding your GFE Page 3

Understanding which charges can change at settlement:

 

This section will help you understand the fees that cannot increase and those that can increase at closing.

 

These charges cannot increase at settlement	The total of these charges can increase up to 10% at settlement	These charges can change at settlement
Our origination charges Your credit or charge (points) for the specific interest rate chosen (after you lock in your interest rate) Your adjusted origination charges (after you lock in your interest rate) Transfer taxes	Requires services that we select Title services and lender’s title insurance (if we select them or you use companies we identify) Owner’s title insurance (if you use companies we identify) Required services that you can shop for (if you use companies we identify) Government recording charges	Required services that you can shop for (if you do not use companies we identify) Title services and lender’s title insurance (if you do not use companies we identify) Owner’s title insurance (if you do not use companies we identify) Initial deposit for your escrow account Daily interest charges Homeowner’s insurance

As you can see in the left box above, GMH Mortgage Services, LLC. cannot change our charges for the loan, and other charges have to be reasonably accurate. 
 
However, if any of the underlying facts provided by the borrower prior to the GFE change, the GMH Mortgage Services, LLC. fees CAN change.  In the new RESPA laws, this is referred to as a Changed Circumstance. 

Changed Circumstances include:

- Information particular to the borrower or transaction relied on in providing the GFE is found to be inaccurate or changes after the GFE was provided, including information about the credit quality, the amount of the loan, the estimated value or sales price of the property, or other information used to provide the GFE (like income, or loan type)

- New or changed information regarding the borrower or transaction that was not relied upon for issuing the GFE.

Various examples provided regarding issuance of a revised GFE include:

Circumstances affecting settlement costs - If the changed circumstance results in an increase in settlement costs at closing and exceeds the tolerances, a revised GFE can be given within 3 business days of receiving the information sufficient to establish the changed circumstance. If a revised GFE is given, the increase in charges must be limited to only those charges where the changed circumstance resulted in the higher charge.
 
Circumstances affecting the loan - If there is a change to the borrower's eligibility for the specific loan terms identified in the original GFE, the originator may provide a revised GFE to the borrower, but it must be issued with 3 business days of receiving the information sufficient to establish the changed circumstance.
 
Borrower-requested changes - If a borrower requested change results in a change to the terms of the loan or the settlement charges, an originator may provide a revised GFE within 3 business days of the borrower's request.
 
Expiration of the original GFE - If the borrower does not express an intent to continue with an application within the mandated 10 business days that the GFE must be in effect, or longer if the lender establishes a longer time frame, then you are no longer bound by the issued GFE.
 
Charges and terms dependent upon interest rate - If the interest rate is not locked or a lock has expired, the charge or credit for the interest rate, the adjusted origination charges, per diem interest and loan terms related to the interest rate may change. Once the borrower does lock (or re-lock) the rate, a new GFE must be provided reflecting the rate dependent charges and terms. All other terms and charges not affected by the rate must remain the same.
 
Using the Tradeoff table:

There is often a tradeoff between the interest rate and settlement charges. This means if you’d like to lower your settlement charges, your interest rate could increase. If you would like to lower your interest rate, you would probably have to pay higher settlement charges.

 

Using the Shopping Chart:

Your GFE and this chart will help you compare different mortgages.

 

If you have additional questions regarding your GFE, please feel free to contact us right away.