SHOPPING FOR A LOAN-GETTING A GOOD FAITH ESTIMATE April 29, 2009

I tell all my friends to call your real estate lawyer before you start the process.  Even if you are knowledgeable about interest rates it never hurts to make a call to get some advice that could save money.  While it serves to reason that a lower rate is better that is not the whole story because if you do not understand the loan program and the closing costs you do not have the whole story.  Remember mortgage brokers are selling a product and ordinarily there will be competition for your loan.  Competition between lenders is good in that it can help lower your borrowing costs.  So what is the best way to determine loan is best for my situation?  Comparing estimates from a few different lenders.  To adequately investigate a loan I need to review a Good Faith Estimate of Closing Costs (GFE).  A GFE is a from prepared by the lender which should show the interest rate and type of program (30 year term, fixed rate) and the closing costs the borrower can expect to pay to close the loan.  A GFE is required as part of a lender’s package and a competent broker should be able to get one for the borrower BEFORE the application.

Steven Decker is a New York Personal Injury attorney specializing in New York real estate law , New York business law, and New York franchise law. You can visit his Law Firm Decker, Decker, Dito and Internicola website by clicking here, download his FREE New York Car Insurance book, or call him at 718-979-4300 or 1-800-310-5520 for a free case analysis.

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