Rates are flat today. The initial jobless claims fell below 400k for the first time in 16 weeks. This has helped bonds this morning. Today’s comparison mortgage rates with no lender fees are 4.5% on a 30 year, 3.625% on a 15 year and 3% on a 5/1 ARM. (click here for details).

In case you were wondering what housing would look like if the US does not raise the debt ceiling (only two full business days to go), I pull out my crystal ball and share a sneak peek in today’s episode. (click here to see it on Facebook). I call dibs on the red and white one. I like to be by the water!

Today I also talk about what it takes to get a Good Faith Estimate or GFE from your mortgage loan officer. When you are shopping lenders you should always ask them to send you a GFE, but first you’ll need to give them 6 things.

I explain what they are in today’s video:

(Watch it on your mobile phone or email reader here)

When you are shopping for mortgage lenders, you should be always be asking them to send you a Good Faith Estimate (GFE). This is a breakdown of the terms of the loan that they are offering. The terms are good for 10 business days, but do not include the interest rate. Keep in mind that the interest quoted rate can expire within minutes of them supplying you with the GFE. The only thing the GFE will give you is the closing costs and the terms of your loan, but these are important for comparing apples to apples when shopping.

Here are the 6 items needed in order for a lender to give you a GFE:

1) Borrower Name
2) Monthly Income (Verbally counts)
3) Social Security Number for a Credit Pull
4) Subject Property Address
5) Estimate of Property Value
6) Loan Amount

Once a lender actually has all six of these items, it is officially considered an application and they are required to give you a GFE within 3 business days.

If you don’t want to get your credit pulled by several different lenders, you can still ask them for a Cost Estimate instead. The only thing is they are not bound by these numbers in any way until they actually supply you with the actual GFE.

Once you have a GFE, lock your loan and provide your lender an intent to proceed. Your lender will then be locked in on the terms they provided, even if they forgot a fee. A executed GFE is locked in. The only thing that could change it is a change of circumstance. And this would only be related to that specific change.

Make sure you are getting your GFE!

Also, if you get a chance, I would love it if you could help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.

Let’s change the way people shop for a mortgage…forever!

See you tomorrow!

– Mike

PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002

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