Good Faith Estimate

[bakes781]

This is my 1st post on here and I am a 1st time homebuyer. I have an agreement on a house for $140k. I've already paid for the inspection & appraisal. Yet I'm still waiting on a GFE(Good Faith Estimate) from my broker. He technically sent me one last week, but by his own acknowledgement it was incorrect. So I've been in contact with his office via email & phone on numerous occasions and still haven't got a revised GFE. From my limited understanding of the process it is required by the lender to provide me with a GFE within 3 business days of receiving my loan application. When I told this to my broker last night he got defensive and said the one he gave me last week complies with that law. But I said that GFE was incorrect so how does that even count? At that point he threatened to drop the loan altogether and I said no I want to see this though. However my P&S is due by Monday & I'm starting to think I need to look elsewhere for my mortgage. I'm in panic mode, so I'm here reaching out to find answers or at least what my options are here?

[jop3]

What was incorrect about the one he provided you?

 

Although, I almost don't care about the answer. Anyone that threatened me like that, would get fired. I'd probably be looking for a new lender already.

[bakes781]

What was incorrect about the one he provided you?

 

Although, I almost don't care about the answer. Anyone that threatened me like that, would get fired. I'd probably be looking for a new lender already.

 

 

Well if I knew I wouldn't be a 1st time homebuyer lol

 

All I know is the closing cost is way more than we had anticipated.

 

Here are the #s

 

Sales Price

$139,900.00

Appraised Value

$139,900.00

Loan Amount

$132,262.00

LTSP Ratio

94.540%

LTAV Ratio

93.605%

Down Payment

 

$4,897.00

 

Processing Admin$245.00 Commitment Fee$645.00 Settlement Service Fee$202.50 Interest $13.5887 / Day$326.13 FHA UFMIP$1,309.00 MI Paid in Cash$0.53 Attorney Fee$675.00 Courier Overnight$35.00 Prepaid Finance Total$3,438.16

 

FHA UFMIP 1,309.00Appraisal Fee 445.00 Settlement Service Fee 202.50 MI Paid in Cash 0.53Tax Service 66.00Title services and lender's title insurance1,551.00Owner's title insurance327.5Government recording charges300Initial deposit for your escrow account1,189.15Daily interest charges326.13Homeowner's insurance531.54Subtotal6,248.35Origination Charge890Total 7,138.35

 

[bakes781]

So I finally received a revised GFE...

Sales Price $139,900.00 Appraised Value$139,900.00 Loan Amount$136,353.00 LTSP Ratio97.47%LTAV Ratio96.50%Down Payment$4,897.00 Processing Admin$245.00 Commitment Fee$645.00 Settlement Service Fee$202.50 Interest $14.0091 / Day$308.20 FHA UFMIP$1,350.00 MI Paid in Cash$0.03 Attorney Fee$675.00 Courier Overnight$35.00 Total Prepaid Finance Charge$3,460.73 Appraisal Fee 445.00 Tax Service 66.00Settlement Service Fee 202.50 FHA UFMIP 1,350.00MI Paid in Cash 0.03Title services & lender's title insurance1,260.00owner's title insurance280government recording charges300Initial deposit for your escrow 242.5Daily interest charges308.2Home Owner's Insurance968Subtotal5,422.23Origination charge890.00Total6,312.23

The loan amount looks to be correct now, but why isn't the settlement(closing cost) much lower?

[jop3]

I'm really confused. Why do you think the settlement costs should be much lower? The format you pasted it in is really hard to read, but from what I can tell, there's nothing that stands out as high. The fees seem pretty average.

 

The only factor that would change that is the rate. What is the interest rate?

[bakes781]

I'm really confused. Why do you think the settlement costs should be much lower? The format you pasted it in is really hard to read, but from what I can tell, there's nothing that stands out as high. The fees seem pretty average.

 

The only factor that would change that is the rate. What is the interest rate?

 

3.75% which is the same as before.

 

I'm still learning all of this on the fly, so if the $6300 is my closing cost and the seller is contributing $4200 towards that, than I'm supposed to be coming up with an additional $2100 on top of my down payment of $4900?

[jop3]

Yes, then the rate and fees seem good. Nothing stands out as being out of the ordinary.

 

I don't know that your match is right. Where are you getting that total? Is that the total charges from the GFE? Because that's not a number you use for figuring the cash needed to close. One reason is that the up front mortgage insurance cost is financed into your loan amount, so it wouldn't be part of your total. Ask your loan officer for an itemization of fees with an estimated cash to close figure.

[bakes781]

Yeah $6,312.23 is the total estimated settlement charges.

 

So if I subtract FHA UFMIP $1,350 that is my actual closing cost?

 

Believe me I have tried to get them to explain it to me and they couldn't care less.

[jop3]

No, that wouldn't be correct either The GFE is no good for telling you how much you need to close. There are other factors involved. You have to ask him for an itemization with cash to close.

 

If he won't give one to you, you need to switch lenders ASAP.

 

The other thing you can do in the meantime to get an idea is to look at page 4 of your loan application (the 1003 Uniform Residential Loan Application). Look in the details of transaction section and there should be a cash to close figure there.

[luckydriver]

sounds like time is short for you but based solely on your characterizations in post 1, your guy sounds like a jerk and it may be good to get someone else....threatening not to do a loan like he did seems childish. i hope nothing goes wrong for you during your process..doesnt sound like someone who will help you