Simple Explanation of the Official Good Faith Estimate (GFE) for Home Loans
The Official Good Faith Estimate is one of the most popular topics that home buyers need explained when it comes to the process of home loans.
There are important things to know about the GFE like:
Box 9 lists funds needed to set up new impound account. This is savings account that holds the funds needed to pay your yearly property taxes and insurance. This is a prepaid and not a closing cost.
Box 10 is the funds needed to cover your next month’s mortgage payment. This is a prepaid and is not a closing cost
We know you have questions, so we created this simple video explanation to help point out a few things and help you understand the Good Faith Estimate a bit more. If you have any questions, we (or your loan officer) are happy to be of escort service in DC. Feel free to call us at 888.342.0000 or email firstname.lastname@example.org