shopping for home loan

Choosing a Loan Provider

Before you select a loan provider, contact several lenders and ask them to prepare Good Faith Estimates (GFEs) to review and compare. A GFE is:

  1. A customized form lenders use to show their best sales offer.

  2. A HUD form that lists all the settlement fees or closing costs associated with a mortgage.

  3. A document that discloses the lender's license and terms.

The correct answer is "B". The GFE lists the amount you'll pay in interest; taxes; title insurance; and attorney, appraisal, broker, and inspection fees.