One of the most confusing aspects of the process for first-time homebuyers is the mortgage. Common homebuyer questions include: Where to get one, how to get one, and what does all that jargon mean?
Advice abounds, especially on the Internet. One common tip is that you should compare offers from lenders before settling on one – and that’s good advice.
Each lender that you visit will provide you with a form known as the Good Faith Estimate (GFE). By law, they must provide you with a GFE within three business days of receiving your application. This form contains all the information you’ll need to compare offers from lenders.
Let’s take a look at exactly what information the Good Faith Estimate provides and how you can use it when shopping for a home loan.