The loan estimate is standardized, and lists services you are allowed to shop for. You may not be able to shop for an appraisal fee or a credit report fee, but be able to shop for a land survey and title insurance. Lenders will vary in their requirements.
Explanation:
The Good Faith Estimate (GFE) was designed to encourage consumers to shop and then compare fees from various lenders before choosing a mortgage provider. Its original purpose was to help consumers understand what services they could shop for—so they not only received the lowest interest rate and best terms but saved significantly on closing costs as well.
The correct answer to this open question is the following.
A good faith estimate is required by law to be given by the lender to the borrower within three days of submitting a loan application. Some drawbacks of not having that estimate at the time of closing are the following. The Closing Disclosure has designated some fee levels of tolerance, so fees can not change to protect the loan estimated. The only exception is when something unexpected happens. The three levels of tolerance are: the zero-tolerance is the fees for the broker. These are fixed. The 10% tolerance accepts a modification of the 10% of fees in case another expenditure is needed. Finally, the no-tolerance concept permits many changes in fees for services beyond the broker assistance.
The term human capital refers to the economic value of a worker's experience and skills. Human capital includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.
