Home arrow Mortgage Forums arrow Loan Talk for First Time Home Buyers arrow

Is a GFE a considered a loan commitment?

Author Message
Icon Mini Profile kurt810zz





Joined: 18 Jun 2009

Posts: 1

1.33 Dollars($)
Post Posted: Thu Jun 18, 2009 7:58 am    Post subject: Is a GFE a considered a loan commitment?
Like 0
Dislike 0

I got a GFE from a lender that then turned around and said that they are no longer offering loans in Pinellas County Florida. Is this legal?
Icon Mini Profile brian3
brian3




Joined: 09 Jun 2009

Posts: 80

21.31 Dollars($)
Post Posted: Thu Jun 18, 2009 8:43 am    Post subject:
Like 0
Dislike 0

Not ethical but legal. a gfe is only an estimate it is not a commitment to lend. their investor might have stopped purchasing loans in that area because of defaults.
_________________
Brian F. Foster
Mortgage Banker
BFF Mortgage
7057 John F. Kennedy Blvd
North Bergen, NJ 07047

201-305-5149


First Residential Mortgage: Licensed direct lenders in NY, NJ, CT, PA, FL, VA, MD, NC, SC, TX
Icon Mini Profile walt





Joined: 18 Jun 2009

Posts: 3

2.32 Dollars($)
Post Posted: Thu Jun 18, 2009 9:42 am    Post subject:
Like 0
Dislike 0

Unfortunately it is. Lenders can not pick and choose a community to lend to.....but they can choose a city or state.

It may be difficult to get a "loan commitment" these days. It use to be that we could use our automated underwriting program for approvals but...no more. The automated approvals are now a guide but not written in stone.

You would need an approval from a lender where an underwriter has looked at the file and given an approval. Now, that being said if you know you have good credit, sufficient down payment, good work history, then you'll probably be fine. What issues do you have that may raise a red flag to the underwriters?..Ask your loan officer what he/she may be worried about. I'm assuming you are dealing with a loan officer with at least 5 years experience in the mortgage industry who can answer that question confidently.
Icon Mini Profile eric2



best lender badge

Joined: 28 May 2009

Posts: 20

6.32 Dollars($)
Post Posted: Thu Jun 18, 2009 10:00 am    Post subject:
Like 0
Dislike 0

The GFE is just that an estimate.
It should disclose all rates and fees associated with the loan.
Icon Mini Profile eric1
eric1
Community Expert
Community Expert

best lender badge

Joined: 04 Jan 2009

Posts: 1511

226.89 Dollars($)
Post Posted: Thu Jun 18, 2009 5:45 pm    Post subject:
Like 0
Dislike 0

Guidelines change every week and sometimes every day. If all you have is a GFE, then you are SOL. You needed to be locked in or registered
_________________
Eric JFree Rate Quote, Stated Income Loans
FHA RATE QUOTE
Mortgage Rate Quote
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights
Bookmark this page
Share |

Helpful References
Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

MortgageFit on Twitter

Followers (265)








Community Chat

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 21.187 seconds.