Stella's Real Estate Blog

Hello Everyone!  Today I learned about the new federal form for a Good Faith Estimate (GFE) that all lenders are now required to use.  I also learned about the revisions and additions for the HUD1 statement.  The GFE was revised and standardized so that people buying a home and shopping for a loan can be presented with the same form from lender to lender, and as a result, be able to make an informed decision on the loan that they use to purchase a home.  The HUD1 was revised so that it pulls specific figures from the GFE, so that the buyer can follow the costs stated in the GFE easier than before. 

The beginning of the process (shopping for a GFE), and the end of the process (purchasing a home and reviewing your HUD!), are the same.  What has changed is the detail in between!  Lots of detail!

In short, all of this is in an effort to help the consumer to find the most appropriate loan for them, and to be able to see the figures from the GFE translate to the HUD!  

Give me a call if you have questions!