A federal law that says a lender must give a borrower an estimate of closing costs within three business days of applying for a loan
After you apply for a loan, the lender must give you a Good faith estimate within 3 business days. The Good faith estimate is a document with a detailed breakdown of the costs that you will need to pay at closing. RESPA also requires that lenders give you a Uniform Settlement statement or HUD-1 before or at closing, which lists the final closing costs.
This law isn’t taken lightly - if lenders don’t supply you with this information, they’ll be slapped with a $10,000 fine and possibly jail time.
Mortgage definitions and Real Estate Terms, Consolidating loans, refinancing mortgages and reverse mortgage process available to anyone. This consumer information site contains several tools and guides to aid in purchasing or refinancing a home or commercial property.
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Tuesday, August 01, 2006
