GFE vs. Actual Closing Cost Differential

[Anonymous]

Does it vary alot between the GFE estimates and the actual cost at closing with the attorney.  What kind of experiences have new home owners been having?? We are getting FHA loan and closing in a tomorrow. Awaiting the final numbers from the attorney's office as we speak. I hope its not to off from all the estimates...

Thanks

Ppetway

[ShanetheMortgageMan]

You probably already got your question answered at the closing... but if your loan officer knows what they are doing, the initial good faith estimate should be very, very close to the final figures.  What happens is this:

1.  Borrower approaches loan officer for loan request

2.  Loan officer, if at a lender, just has 1 set of fees to know for the lender, or at a broker checks out which lender has the lowest rates and then has a sheet of that lenders fees

3.  Loan officer calls up local title company/closing attorney/escrow company and inquires about estimates on title/escrow/attorney fees for that loan amount and/or sales price, as well as any city/county/state fees that would be applicable

4.  Loan officer delivers borrower GFE

Now once you are entered into the transaction then you will know the exact title/escrow/closing attorney being used.... and your loan officer can get a more polished GFE to you.  Then once your loan is fully approved and docs are sent to the title/escrow/attorney for the signing a Final HUD-1 closing statement is prepared by the closing agent (title/escrow/attorney) and you are given a copy before closing.