Good Faith Estimates......
When you shop for a mortgage, does your loan officer give you a copy of the good faith estimate? Do they even give you this good faith estimate form when you apply for your mortgage?
I only bring this up because I just spoke to my 5th client in as little as 45 days that applied with a lender previously who never gave them a good faith estimate. This is 110% unacceptable from any standards within the mortgage industry. Ask any professional loan officer that is ethical and on top of their game per se, and they will be pulling their hair out. Hey, I don't have that much hair left to pull out. And I am serious about this. But it drives me crazy when I ask someone who is looking for some help or guidance and I ask them 3 simple and basic questions. And they can't tell me because the other loan officer/lender never shared anything with them. Those questions and the answers I get?
- What rate where you given? Answer : I don't know, they didn't tell me anything but that I was approved.
- Did you get a god faith estimate? Answer : No, they never gave me one. Even after I applied, I never received one.
- Do you know what your payment is? Answer : No, they never told me. But they did say that I was qualified and/or approved.
No matter if you are shopping for a FHA mortgage or a conventional mortgage, you need to keep something in mind. First off, once you apply for a mortgage, by law, you are suppose to receive a copy of your good faith estimate. I am not pointing the finger at the consumer, stating that you all should be asking what your payment is, what your rate is. In all honesty, think of common sense. Wouldn't you want to know these two important things anyhow? Do you buy a car, not asking what your payment is before you sign the paperwork? Don't be intimidated by a loan officer/lender and be hesitate to ask questions if you aren't sure.
Overall, my clients know that I am very passionate in what I do. I have been helping families finance their homes for over 15 years now. I just received this e-mail 20 minutes ago from a client that I just started helping.
Jeff,
It just seems like they really dont care now...i mean...ive only been talking to you like a week now and already someone is going to look at the house! Ive been dealing with them over amonth and they couldnt give me any answers. Thank you so much.
Danielle
I don't make promises or guarantees. I shoot straight from the hip basically. It's usually not good to talk about yourself in a blog such as this. But I truly think the many consumers are led down the wrong path so many times, because they trust to easily and to quickly. You need to know the basic questions to ask or have answered. Please read this post about red flags. It might open your eyes a little or save you time or money in the future : Consumers need to be aware of these Red Flags !!!!!
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For more information on FHA loans, please go to this link. The FHA Expert
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!
Copyright © 2008 by Jeff Belonger
Jeff - The questions/answers you pointed out, I hear of way too often. Unacceptable? Absolutely! It's not only about ethics in receiving these disclosures, it's the law!!
JUST A FYI.... I HAVE A LONG RUN ON SENTENCE IN MY POST, BUT I CAN'T FIX IT UNTIL THEY GET THE BUG FIXED OR I WILL LOSE SOME STUFF.
JASON.... what's sad is that I am hearing more of it, when many loan officers have left the business. I guess it shows that those holding on by the skin of their teeth, who weren't good to begin with, are keeping as much from the consumer as possible. In fear of losing that person to a good, ethical loan officer. Yea, and the law part really gets me... so many out of compliance, it's unreal.
MISSY..... yes, it is against the law... but this type of law is very hard to enforce. Because as long as the consumer signed an application with the original good faith, it would be easy for the lender to say that they gave them a copy.... even if they didn't. They could just say that they client lost their copy. Yes, it's very sad.
LOL at your disclaimer comment. I can relate.
As for the post itself, it really is sad, how many mortgage brokers don't follow any set of acceptable guidelines. The customers deserve better. Good luck!
Jeff,
Well said!
Bill
LISA.... are you referring to the comment I left? Deserve better?
Shit... crap, they deserve at least average. I find everything that I mentioned, way below average. Some loan officers will just keep as much information possible away from the consumer. Because think of this... the more the consumer knows, the more educated that they become and possibly dangerous. If you are that good, there is no need to be afraid of this.LARRY.... yes, and I have written about this before. FHA - Conventional - APR vs Rate -- Understanding the difference....... So, I agree with your statement...
SHARON.... I totally agree and thanks for the compliment & for stopping by.
THESA.... my pleasure and thanks for the kind words. I left you a comment to e-mail me or call me on my other post, about pulling your hair out?
BILL..... thanks Bill... you and I are usually on the same page when it comes to this kind of information.
SCOTT...... yes, it's amazing and sad... but as I mentioned to Lisa above, some loan officers just believe that as long as the client has the least amount of info... 2 things... it's harder for them to shop... 2nd, if something went wrong, how would that client really know? They have nothing to compare it to, right?
do holidays count in the 3 day requirement for GFE'S?