Good Faith Estimate Helps Home Buyers

By Tara Vreeland, The News On 6

TULSA, OK -- New federal rules called the Good Faith Estimate are helping to ease suspicions for prospective home buyers.

"What it really does for our customers is, I think, give them more peace of mind that they are going to be taken of," said Steve Currington, mortgage lender.

There has always been a Good Faith Estimate, but now it's an updated and more detailed version meant to safeguard home buyers from rogue loan officers or lenders.

"The most important thing about it is that the government has put some very strict regulations on us as a lender on any fees that we quote to a customer," Currington said.

Mortgage Banker Steve Currington says the Good Faith Estimate 2010 prevents some lenders from doing things they should not have - like changing fees on a whim.

For example: the G.F.E says some charges cannot increase at settlement: the origination charge, the credit or charge for the specific interest rate chosen, the adjustment origination charges, or transfer taxes.

"We have to disclose that information to the customer immediately and if we don't, then we can't charge it to them," Currington said.

The loan's key terms and settlement costs are clearly disclosed. This will give house hunters the option to shop around for different loans and not feel so overwhelmed when they get to closing

"You are at the closing table with two realtors, a lender, a closer with the title company, and there is just pressure there," said mortgage lender Steve Currington.

The new rules rely on old-fashioned honesty and of course - Good Faith.

Critics say the new rules complicate the process since there are now three pages instead of one. Currington says there also is not a place for the buyer to initial or sign on the Good Faith Estimate.

It's still important to do your research when choosing where to get your loan.