Help with Good Faith Estimates...

[Anonymous]

Hi All,

My apologies in advance for the newbie post...

I've recieved a couple of GFE's (.pdf format) that I would like advice on but cant figure a way to post them here in my thread.

Can anyone assist?

[ShanetheMortgageMan]

www.fileden.com let's you upload any type of file.  Then you can just post a link to your .pdf.  Or you can just copy & paste each item of your GFE into a post.

When I made my post about understanding the GFE I took pictures of each page of the .pdf, saved them as an interlaced .gif file, uploaded them to ImageShack.us, and then posted the pictures in the message.  A little more complicated but then you see the image rather than clicking on the link to see what I was describing.

[Anonymous]

Hey - thanks Shane!

Here are the links.

6.5% GFE: http://www.fileden.com/files/2008/12/1/2207753/6.5%20GFE.pdf

5.5% GFE: http://www.fileden.com/files/2008/12/1/2207753/5.5%20GFE.pdf

NVR GFE 1: http://www.fileden.com/files/2008/12/1/2207753/NVR%20GFE%20Scan.pdf

NVR GFE 2: http://www.fileden.com/files/2008/12/1/2207753/NVR%20GFE%20Scan%202.pdf

My credit is over 780 from all three bureaus.

Please let me know what you think.

Thanks!

[ShanetheMortgageMan]

The "NVR" GFE's are much better.  Did you get the 1st 2 GFE's on the same day as NVR's?  If not, make sure you are comparing apples to apples, rates change daily and sometimes even a few times a day.  Only thing on NVR's they seem to be missing some section 800 fees, namely an underwriting fee and maybe even a flood certificicate, tax service fee, and wire fee, should total about $500-$800 or so.  Also on the 1st set of GFE's there is a "sub financing" of $10k listed - are you getting some down payment assistance or something?

[Anonymous]

Shane youre exactly right.  The first ones were from 25 Nov 08 and the NVR ones were from today.

On the NVR GFE they are paying most of the 800 fees.

On the first ones the 10k closing cost assistance is an incentive that wont be available until January.  They are contributing $5 for every $1 that I contribute in a down payment match program.

Does that mean they are only offering the incetive program as bait only to jack up their closing costs in the end?

Also ~

I thought there were sections that couldnt be adjusted and were set by the state on a GFE but in comparing the two I see that I was wrong...

Example:

1201 Government Recording Fees: Lender A = $150 and Lender B = $32

Message Edited by retna7 on 12-02-2008 12:05 PM

[ShanetheMortgageMan]

A lot of the other sections on the GFE are just estimates - remember it's a good faith estimate, not a good faith actual.  There are some companies who will prepare good faith actuals but it's not very common in the industry nor is it required, so asking for one might get some strange looks, and it's basically a marketing piece.  So estimating recording fees, escrow/attorney costs are all normal.  Once you have actually made an offer on a home, it gets accepted, your closing attorney/title company is selected, you will be provided with an updated GFE with more accurate figures.  Go back to the 1st company and get an updated GFE and then you'll be able to properly compare.

[Anonymous]

Ok will do.

[Anonymous]

Ok - here is the latest and greatest recieved today for an apples to apples comparison.

5.375% GFE http://www.fileden.com/files/2008/12/1/2207753/5.375%20GFE.pdf

I asked why they are charging me points and loan origination fees for a 30 year FHA loan just to get the rate down from their 6.5% to 5.375% while the national average (according to Bankrate) and NVR Mortgage are both closer to 5.5% with no points.

His response was...

"The national average includes several items including rates that have points included."

I will speak with my secondary department and see what improvements we can make."

Does this make sense?

[ShanetheMortgageMan]

It looks better than before but at 5.375% you should really only be charged 1 point.  No need for the discount fee.  Might even be able to get a little better than 5.375% with 1 point too.  Also, FYI BankRate.com doesn't do mortgages, they take an average of a not so large sample size.  Sometimes the "national average rate" on their site is well above what the market is and sometimes it's below.  While it's a good indicator on where rates are approximately, trying to hold a lender to the rate you are seeing advertised elsewhere isn't ever a good idea (because if they could offer it to you in the first place they should have).  Keep in mind that most places advertised rates are for conforming financing with a 740+ score, if you are not doing conforming financing, or have less than a 740 score, that rate probably won't apply.

[Anonymous]

I didnt know that - thanks Shane and I agree that if they could have offered it to me in the first place then they should have but I also understand that these rates change daily (from your previous post).

Within an hour of my email theyve adjusted to match NVR at 5.5% with no points and 5.250% with one point.

All fees remained the same. 

With their GFE I am paying:

Processing Fee $280

Underwriting Fee $350

Application Fee $100

Document Preparation Fee $250

Closing or Escrow Fee $295

Title Exam Fee $150

Title Binder Fee (Mead / Trapper Keeper?!?!) $75

Abstract Fee?!? $100

Settlement Recording Fee $75

Survey Fee $250

None of these appear on the NVR GFE as a cost to me and they total about 2k.

Should I try and negotiate (any or all) of these fees?

I dont even understand most of them - Whats the difference between "Document Preparation" and "Processing" and why do they cost so much?