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raketka [301]
3 years ago
8

A good faith estimate is required by law to be given by the lender to the borrower within three days of submitting a loan applic

ation. What are some of the drawbacks of not having that estimate at the time of closing?
Mathematics
1 answer:
tensa zangetsu [6.8K]3 years ago
5 0

Answer: 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.

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