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Real Estate Tips
First Time Buyers >Good Faith Estimates

Several years ago the U.S. Congress tried to protect consumers from a few unscrupulous lenders by requiring all lenders to calculate and disclose the annual percentage rate (APR) you pay on your mortgage loan. But most homebuyers will learn more by directing their attention to the Good Faith Estimate of Settlement Costs (GFE). Although Congress meant well, in practice the APR is not helpful and may be confusing.

If you are looking for a good way to understand your costs of borrowing and/or to compare one lender's costs to another, the GFE is your best bet. Get your lender(s) to provide a written GFE before you commit your mortgage business. When reviewing a GFE, keep in mind that the lender actually controls only a certain portion of the disclosed costs. Other parties typically control costs of appraisal, settlement, title insurance, recording fees and taxes, survey, and the "prepaid" expenses of homeowner's insurance, mortgage insurance, real estate taxes, etc. Review these origination fees, discount points, etc. and you will have the ability to understand the full costs of your proposed mortgage loan.

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Real Estate Trivia
Q 
1992 marked the first year since before the Civil War that there were fewer than 2 million ________ in the United States?

A 
There are fewer than 2 million farms, and agricultural land is still being carved up for residential and commercial uses.
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Jim and Mikki Snell, REALTOR®, real estate agent and broker for Sherwood, Newberg, and Dundee, Oregon home listings, property and land for sale - NUMBER1EXPERT

Jim and Mikki Snell, GRI
Prudential Northwest Properties

2318 Portland Rd., Suite 100
Newberg, OR 97132
Jim Direct: 503-351-5918
Mikki Direct: 503-381-5695
Fax: 503-520-2451
Email: portlandruralhomes@number1expert.com
Email: mikki@jimsnell.com

As two of America's NUMBER1EXPERTS™ in the Sherwood, Newberg, and Dundee area Jim and Mikki are well equipped to guide you through all your real estate needs. Call or email them today!

GRI ABR SRES


    

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