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Why the Docs

From time to time, I get asked the following question by those inquiring about a new home loan:

“Why are you the only lender asking me to send over my income documentation prior to issuing me a good faith estimate (GFE)?”

First off, in today’s market, where many lenders/brokers are willing to loosely fire-off half-guessed estimates, I think that is a great question! I also think I have an answer that will make sense to you; read on.

Before I get into that, however, I need to re-explain what a GFE is. The GFE, by definition, is an estimate – one that you are able to confidently rely on in ‘good faith’ – that contains all of the details surrounding the home loan being offered to you by a lender/broker. Oftentimes, people think the opposite; that it’s an estimate based on the lender’s ‘good faith’ reliance in the few details given over the phone to make the estimate. That’s simply not true. If it was true, the federal government would require it to be provided prior to application [the government defines ‘application’ as the date the credit is pulled] instead of within three days after the application.

Secondly, would you really want an estimate where the lender didn’t exercise due diligence prior to providing the estimate? If you follow that road, you are making a decision – one that pertains to one of the largest transactions of your lifetime – based on half-truths and laziness. That might sound like a bold statement, but the reality is that the law allows a lender/broker to change any aspect of the GFE as long as they tell you the ‘real’ numbers no less than three days before the closing.

Being in writing, doesn’t necessarily mean a thing!

If you went into an auto service station complaining of a sputtering engine, would you really believe any quote that the shop offered-up, off the cuff, without them first looking under the hood and listening to the troubled engine? I don’t presume to know what you would do in this situation, but I sure know that I would want them to look at it, listen to it, and maybe even drive it before I would seriously consider their estimate to be accurate.

…and that’s just for a car repair quote!

Wouldn’t it be wise to want the same done for one of the largest transactions of your life?

Consider This

We are not asking that you pay any sort of fee to have us do the work that is needed to get you a solid, reliable, honest and personalized quote. Not a cent!

Isn’t that what you want? A mortgage company that isn’t just about telling you one thing to get you buried in the process, only to show you their true colors (i.e. real numbers) later on? Because of this honesty-policy, we have an A+ rating with the Better Business Bureau.

We think honesty rocks!

If you agree, contact me today to get your free-quote started.

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