GFE review?

[Anonymous]

Purchase Price $140k 20% down

5.5% Interest Rate Conventional with WF (But I am floating right now, not locked at that rate - still seems high for a 760 credit score, no??)

801.  0.000% Origination Fee

802.  0.000%  Discount

808-817 PROCESSING FEE 475.00

808-817 APPLICATION FEE 475.00 

808-817 FLOOD LIFE OF LOAN FEE 19.00 

808-817 UNDERWRITING FEE 200.00

808-817 TAX SERVICE FEE 90.00

1103 TITLE EXAM/ATTYS OPINION 150.00

1107 ATTORNEYS FEE 650.00

1108 TITLE INSURANCE 490.00

1111-1113 MUNICIPAL LIEN SEARCH 29.00

1201 RECORDING FEE-MRTG/DOT 175.00

1201 RECORDING FEE - DEED 125.00

1204-1205 RECORDING FEE - MISC 65.00

1301 SURVEY/PLAT/IMPRVMNT CERT 150.00

1303-1305 COURIER/MSNGR-3RD PARTY 75.00

It was really mucky to try to copy and paste. I did the best I could and had to retype some by hand. If I missed anything important, please let me know.  I omitted the property taxes and insurance info as it seems pretty straight forward and easy to understand.

One question...what is an aggregate account adjustment. Credit for $700 or so dollars at bottom of GFE..??

Message Edited by UpUpUp on 01-28-2009 03:39 PM

[ShanetheMortgageMan]

At closing, the escrow account information is usually shown in the 1000 section of the settlement statement, and the Aggregate Account Adjustment is usually a negative value at line 1008 to make sure the lender does not hold excess funds in the escrow account.  However, it could be a positive number if the projected payments in the next twelve months are insufficient when the bills are due.  When the adjustment value shown on the HUD-1 line 1008 is a negative figure, it means the lender credits the adjustment back to the borrower. The Real Estate Settlement Procedures Act (RESPA) limits the cushion balance of escrow accounts to not more than two months’ payments, which means the lender cannot hold in aggregate more than fourteen months of the borrower’s property tax and insurance payments in the escrow account.

As far as the offer, rate is a bit high... as of this morning there was still 4.875% on conventional financing with a 740+ with 1 point available but rates have since gone up.

Message Edited by ShanetheMortgageMan on 01-28-2009 01:27 PM

[Anonymous]

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@ShanetheMortgageMan wrote:

At closing, the escrow account information is usually shown in the 1000 section of the settlement statement, and the Aggregate Account Adjustment is usually a negative value at line 1008 to make sure the lender does not hold excess funds in the escrow account.  However, it could be a positive number if the projected payments in the next twelve months are insufficient when the bills are due.  When the adjustment value shown on the HUD-1 line 1008 is a negative figure, it means the lender credits the adjustment back to the borrower. The Real Estate Settlement Procedures Act (RESPA) limits the cushion balance of escrow accounts to not more than two months’ payments, which means the lender cannot hold in aggregate more than fourteen months of the borrower’s property tax and insurance payments in the escrow account.

As far as the offer, rate is a bit high... as of this morning there was still 4.875% on conventional financing with a 740+ with 1 point available but rates have since gone up.

Message Edited by ShanetheMortgageMan on 01-28-2009 01:27 PM

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Once again. Thank you for the explanation. You are awesome. 

Do the fees seem in line to you?

[Anonymous]

Just saw your follow up.  I thought the rate looked high too.  I'll have to talk to them about that.

[ShanetheMortgageMan]

Application fee is silly but you aren't being charged for an appraisal - perhaps it substitutes for that.  Otherwise I mean the fees don't look out of line but for the rate you are being offered they should be able to pay for some of their own fees from their profit.

[Anonymous]

I thought the same about the application fee. What the heck is that all about.  I want a lower rate.  I didn't work this hard on my credit to end up with a less than stellar rate. On their own website it says that as of 4:30pm today 30 year fixed rate is 5.125%.  I am hoping that rates go down in the next month or so and if that's the case then it will probably work out in the end, but still.

Message Edited by UpUpUp on 01-28-2009 04:44 PM

[Anonymous]

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@Anonymous wrote:
 I want a lower rate.  I didn't work this hard on my credit to end up with a less than stellar rate. On their own website it says that as of 4:30pm today 30 year fixed rate is 5.125%.  I am hoping that rates go down in the next month or so and if that's the case then it will probably work out in the end, but still.

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I may be missing something but the Wells Fargo page says all interest rates come with 1 point as an origination fee and it looks like your GFE doesn't have the point?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:
 I want a lower rate.  I didn't work this hard on my credit to end up with a less than stellar rate. On their own website it says that as of 4:30pm today 30 year fixed rate is 5.125%.  I am hoping that rates go down in the next month or so and if that's the case then it will probably work out in the end, but still.

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I may be missing something but the Wells Fargo page says all interest rates come with 1 point as an origination fee and it looks like your GFE doesn't have the point?

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You aren't missing a thing. I WAS missing that very crucial detail! Thank you for pointing that out!!!

[ShanetheMortgageMan]

Well if it has a point on top of that then that is just ridiculous...

[Anonymous]

No, no point on top of it. But I was missing that the advertised rate they had posted on their website for today was including a point.  I still think for my score it's high. I am taking my chances and waiting to lock anyway. I am hoping for lower rates.