HUD’s New Good Faith Form

The Department of Housing and Urban Development intends to make things less confusing on Jan. 1, 2010, with a new Good Faith Estimate form, or GFE, which outlines the costs of a proposed loan, including a revised settlement statement which displays your final loan costs and is signed at closing. HUD estimates that average borrowers will save nearly $700 because they can clearly define costs and compare loans.

For many buyers it can be difficult to understand the costs that are built in to their loan. If a buyer is given a loan where the cost is very clear it will make it easy to compare other loans and make informative decisions.

While shopping for a loan we all need to take the time to compare the different loans that are available. Hopefully, the new Good Faith form will help buyers better understand the type of loan they will be getting.

For more great information go to Everything You Need To Know About a Short Sale.

There are so many advantages to being a first time buyer in this current market. For more information regarding how I can help you negotiate the best deal on your first home, contact Eddie Perez, Broker-REALTOR, CDPE. My market includes Hoboken, Jersey City, Weehawken and Union City.  I can be reached at eddie@InvestHoboken.com or 201-344-2886.

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Tags: GFE, HUD new good faith form, understanding loans

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