Posted on: 07th Apr, 2004 12:39 am
Good Faith Estimate is one of the various disclosures which you will receive within three days of loan application. It is provided by the lender. It is a honest approximate of the closing costs, down payment balances, prepaid expenses and all the different type of costs that borrower needs to pay at the closing.
Under the Real Estate Settlement Procedures Act (RESPA), the lenders are required to provide a written statement presenting an estimate of closing costs to the borrower within three days of submitting a mortgage loan application.
Under the Real Estate Settlement Procedures Act (RESPA), the lenders are required to provide a written statement presenting an estimate of closing costs to the borrower within three days of submitting a mortgage loan application.
Can I take any action against the lender if the charges that I need to pay at closing are higher than those listed in good faith estimate?
Clark_C
Clark_C
Hi,
You dont have any right to sue the lender in this circumstance. The best thing you can do is let your lender and the closing agent know that you want to see the HUD-1 settlement statement one day in advance. You are free to question any amount that you do not understand.
Thanks,
Jerry
You dont have any right to sue the lender in this circumstance. The best thing you can do is let your lender and the closing agent know that you want to see the HUD-1 settlement statement one day in advance. You are free to question any amount that you do not understand.
Thanks,
Jerry
How are the 3 days figured. Application dated today, March 20th Friday, which day would be out of compliance?
I think 24th March, Tuesday would be out of compliance.