Good Faith Estimate
Loan Documents
When you begin the loan process, your lender will give you many documents discussing the details of the loan. Two important documents are the Good Faith Estimate and the Truth in Lending Statement. These are called disclosure documents because they "disclose" the details of the loan you are considering. These are required by law.Once you have decided on a loan, your lender will provide you with more paperwork. The most important document to review is the HUD-1 Settlement Statement. The HUD-1 Settlement Statement discloses all the costs and adjustments for the buyer and the seller in a home purchase or, for just the borrower, in a refinance.
Compare the Good Faith Estimate with the HUD-1 Settlement Statement line by line before signing. Make sure there aren't any major differences between the two. If there are, contact your lender.
Take the time to understand these documents before signing the loan papers:
