Truth in Lending | Good Faith Estimate
'Transparency' is one of those terms that gets thrown around a lot in the mortgage world these days. It's actually pretty simple - you as the Client should be able to see everything that's going on with the home loan that you are getting for your purchase (or re-finance).
Nothing should be hidden, you should know where every dollar is going in the transaction, what all of the charges are for, etc. Simple. Can you imagine wanting it any other way?
No one in their right mind would want to borrow large sums of money and not know what's going on! And no Mortgage Broker / Lender / Bank would ever try to cover anything up - right?!?
OK Alice, when you're back from Wonderland, we'll talk....................................
See the 'little' mess the country is in right now? People saw more money available then they ever thought possible and they wanted it - quite a few closed their eyes at that point. Combine that with the BS artists who would gloss over the specifics of the loan just to make another commission!
Out of the entire loan package the two biggest items are the Good Faith Estimate (GFE) and the Truth in Lending statement (TIL). These two items are put together so that you understand everything about your new loan. If you don't understand something, ask for clarification. If there is any hesitation on the part of the Broker to explain something, you should start to wonder..... and if you're ever told 'oh, don't worry about that' just get up and leave!
You also need to know if the person you're dealing with is making anything for the rate on the loan - Yield Spread Premium (YSP) - there's nothing wrong with it IF it's disclosed. Make sure you understand EXACTLY how it affects rates / closing costs.
I could go on all day, but I do have to get to the office!
Call me if you have any questions-
Marc J Blasi
For some time now, Knightlines Mortgage Services has been offering the people of Florida a convenient way to finance and re-finance their residential property.
But that isn’t the entire story - we are also doing commercial lending in all 50 states. AND - now we can offer commercial financing OUTSIDE of the country as well. Caribbean, South America, etc - just call for the details.