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Part Four

regular charges, along with the other anticipated closing costs involved with the loan. It utilizes those figures to estimate the total amount of cash you will need to buy your house and calculates your approximate monthly payment. Some lenders will insist they cannot provide a good faith estimate until you have a property under contract or in escrow. That’s baloney. Good faith estimates are simply that—estimates—and they can be prepared quickly and easily. In fact, some lenders we work with will prepare several, one for each loan scenario they are discussing with you. It assists you in comparing those loans so you can decide which one to take. It also gives you something to compare with other lenders if you happen to be shopping for the best rates and costs. If one lender charges, for example, a $450 loan processing fee, and another charges $150, and the rates and other fees are the same, you might want to spend more time with the lender who charges less. But do not let these fees be the only reason for selecting a lender. Consider what happened to Jack. A good mortgage broker is worth their weight in gold. You should also get a good faith estimate on two other occasions:(1) when you have a property under contract, and your Realtor® provides a copy of that contract to the lender; (2) when you change loan programs, either because you don’t qualify for the one you started with, or you decide on a different plan. Once you are under contract, many of the items that were estimated on the first good faith estimate are known, so the estimate is more accurate and closer to reality.

The Last-Minute Fees Occasionally, one of our customers decides to use a lender we haven’t recommended. In one case, a couple decided to work with a lender who was renting a home 86

Profile for Linda DeVlieg Real Estate

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

Profile for lindadev