We will be beginning Part 3 discussing some of the sections on page 1 of the Good Faith Estimate (GFE):  PURPOSE, SHOPPING FOR YOUR LOAN, and IMPORTANT DATES. We will discuss these sections and how they relate to a purchase and a refinance transaction.

The PURPOSE section of the GFE describes why you are being given the GFE and the main reason is for the lender to advise you of all the costs associated with the loan that they are offering you and all the terms that are relevant to your transaction.

The SHOPPING FOR YOUR LOAN section of the GFE advises you that you have the right to shop for the best loan that you can and this can only be done by you and that by using this GFE, you will be able to compare different offer you receive from lenders based on a common set of parameters. So that you have the ability to make the best decision that you can. The purpose and shopping sections are really to advise you why you are getting a GFE and how you should be using it to shop for the best loan.

The IMPORTANT DATES part of your GFE gives you important information about essential dates in regards to your mortgage. The first important date that they give you, is the date that the interest rate quoted in your summary of your loan section must remain unchanged until that specific date. The second date is telling you that your actual GFE settlement charges estimate are a valid estimate until the given day. Once the given date has been reached, the settlement charges are liable to change and a new GFE will be provided. The next and third date that the GFE provides you in this section is the amount of time, always in days, you have to close your loan, otherwise known as going into settlement, before you lose your locked interest rate, and your interest rate will change after you pass that time of period listed in this part. It is important you remain aware of the amount of days you have to close your loan with the desired interest rate. The last and final section tells you how many days you must reach declare your locked interest rate before you go into settlement. This is important as well because this makes you

At My Title Direct, we pride ourselves in being able to provide the most accurate up to date information available to anyone who is purchasing or refinancing their home. You can always get an instant quote for Title Insurance from our website at www.mytitledirect.com and we stand ready to answer your questions about any type of real estate transaction at any time. Stay tuned for Part 4 of our series to follow soon.