Good Faith “Estimates” And Understanding The Truth In Lending.

The Good Faith Estimate (GFE) was created to help you shop and compare the service costs of lenders. In practice though, it legally has loopholes that could cost you at your loan closing.

How? All the numbers on the GFE are “estimates”, subject to change right up to closing. And the story is that lenders can’t be certain about some of the third-party costs until late in the process. The GFE, though, not only gives them the right to change third-party costs, but also their own. Costs they do know… and with certainty.

When Truth In Lending Doesn’t Help
Under Truth in Lending laws lenders are required to provide you with an Annual Percentage Rate (APR), which shows the cost of a loan as an annual rate – totaling the interest rate, points and fixed-dollar lender fees.

When your loan locks, you’re given a Truth In Lending statement that shows the APR. It reflects the locked rate, points, and the loan fees shown on the GFE. But since the APR is not locked, neither are your loan fees.

If a lender wants to Increase the fixed-dollar fees after locking the rate and points they simply need to issue a new APR, which will be higher because it includes the now higher fees.


What Actual Truth In Lending Looks Like – The Nations Choice Mortgage difference

All mortgage providers know the fees of the lenders they do business with. Which is why, we show you the total lender charges for every loan program you consider.

Once Nations Choice Mortgage knows who the best lender for your loan is we confirm the total closing costs, lock the rate and points, and then do something that 99.9% of all mortgage companies would never do.

Nations Choice Mortgage guarantees the lender’s fixed-dollar fees will not change.

Get the Truth in Lending you deserve when you get your Good Faith Estimate from Nations Choice Mortgage.


If you have already received a Good Faith Estimate, you probably have a few questions. Two of the most common questions we hear are: “What do I need to look for in this?” and “How does this compare with other estimates?”

To answers these questions contact Nations Choice Mortgage for a FREE Good Faith Estimate Overview. We’ll help you understand and evaluate your estimate, and even compare it against others you may have received so you can get the very best loan for you.


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