Things I’ve Learned Along The Way from The Real Estate Sage at The Real Estate Investment Institute -

Services for Real Estate Pros - The Real Estate Investment Institute - 1retiredsage
William J Archambault Jr sharing 4 decades of lending and real estate experience. Through books and services of REII. Bill writes about and teaches real estate investment, real estate, lending, borrowing, credit, and sales. Bill is available as a speaker, trainer, hands on coach, or remote consultant.



Let me start by apologizing for the first 5 parts of this series! Unless you're a mortgage originator a line by line understanding of the "Good Faith Estimate" is a waste of time, most are a waste of paper!My regular readers know that I believe that Regulation Z was a noble idea who's execution a...
Line 902 *Mortgage Insurance PremiumThis is the PMI or MI paid in advance.Line 903 Hazard Insurance PremiumThis is the first year's cost of your home owners policy. This fee will be what it will be, it's better if this estimate is high.Line 905 *VA Funding FeeFee charged by the VA.All lines in th...
Line 102 and 1203Rarely used.Line 1302 * Pest Inspection FeeThis depends upon local need. If required by lender see. Always required on VA loans.Unnumbered Comparison To Broker (Not Paid Out Of Loan Proceeds)This is the "Yield Spread Premium" paid by the lender/investor to the mortgage broker, if...
Line 803 *Appraisal FeeThe estimate cost of the appraisal. This rarely varies except when additional inspection are required because of unfinished work or required repairs.Line 804 *Credit ReportThe cost of the credit report, this can go up as the actual lender may require additional reports or a...
The Good Faith Estimate is an "ESTIMATE" of the cost of the loan you've applied for. The lender is required to provided you with it and its' companion the "Truth in Lending" form within three days of your application. We're going to go through it line by line, but the individual lines are unimpor...
Figures don't lie, but liars figure! It is never so true as in "The Good Faith Estimate!" If that weren't bad enough for the real estate consumer the liars' figures get exponentially distorted, when applied to the "Truth In Lending" form! These are government mandated disclosures that lend an air...

William J. Archambault, Jr.

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Sage real estate and mortgage information, from the man at The Real Estate Investment Institute.