Posted on: 20th Dec, 2006 04:37 pm
I am not sure if good faith estimate and hud 1 statement are the same thing or not? do they mean the same? please help. g.serafini
Hi Serafini,
Welcome to Mortgagefit discussion board.
Good Faith Estimate and HUD-1 Statement are two very different documents.
A GFE is what you get from your broker or loan officer providing you with the breakup of the fees you will be required to pay at the time of the loan closing. You will get this before the closing occurs for your loan.
On the other hand, HUD-1 Statement is what you receive at the time of closing of your loan. It will list the amounts that you are actually paying. In comparison the GFE only provides an estimate of how much the expense could be.
The HUD-1 settlement statement will itemize the expenses you and your lender will have to bear for the completion of the real estate purchase transaction.
Hope you confusion was cleared. :)
Thanks
Blue
Welcome to Mortgagefit discussion board.
Good Faith Estimate and HUD-1 Statement are two very different documents.
A GFE is what you get from your broker or loan officer providing you with the breakup of the fees you will be required to pay at the time of the loan closing. You will get this before the closing occurs for your loan.
On the other hand, HUD-1 Statement is what you receive at the time of closing of your loan. It will list the amounts that you are actually paying. In comparison the GFE only provides an estimate of how much the expense could be.
The HUD-1 settlement statement will itemize the expenses you and your lender will have to bear for the completion of the real estate purchase transaction.
Hope you confusion was cleared. :)
Thanks
Blue
thanks blue, I have one more thing to ask, some of the terms I am not sure what they mean, its PFC and POC, do you have any idea about them?
Hi Serafini,
The GFE lists all the fees which you will be required to pay at the time of closing of your loan.
PFC is for expenses such as payment in relation to tax service or points & means Prepaid Financial Charges.
The other one, POC normally includes charges for any kind of inspection or charges in relation to obtaining the credit report. It stands for Paid Outside of Closing.
Clear all your doubts before your closing, we are with you.
Thanks
Blue
The GFE lists all the fees which you will be required to pay at the time of closing of your loan.
PFC is for expenses such as payment in relation to tax service or points & means Prepaid Financial Charges.
The other one, POC normally includes charges for any kind of inspection or charges in relation to obtaining the credit report. It stands for Paid Outside of Closing.
Clear all your doubts before your closing, we are with you.
Thanks
Blue
Hi Serafini,
The HUD-1 Settlement Statement is given to borrowers/buyers a day before closing. This is done to make borrowers aware of the final costs involved in closing. Although they receive the Good faith estimate just after applying for the loan, it is a right estimate of the costs. Buyers can thus make arrangements for the closing costs much in advance.
The difference in the costs provided by Good Faith Estimate and HUD-1 is due to the addition of appraisal fees and other third party fees.
Both the buyer and the seller must sign the HUD-1 statement.
You may refer to our section on Good Faith Estimate and our discussions on HUD-1 Statement.
Thanks,
Caron.
The HUD-1 Settlement Statement is given to borrowers/buyers a day before closing. This is done to make borrowers aware of the final costs involved in closing. Although they receive the Good faith estimate just after applying for the loan, it is a right estimate of the costs. Buyers can thus make arrangements for the closing costs much in advance.
The difference in the costs provided by Good Faith Estimate and HUD-1 is due to the addition of appraisal fees and other third party fees.
Both the buyer and the seller must sign the HUD-1 statement.
You may refer to our section on Good Faith Estimate and our discussions on HUD-1 Statement.
Thanks,
Caron.