My New Blog

In 2010, the mortgage industry, for the first time in 20 or more years there will be a change to the Good Faith Estimate (GFE).  Congress asked the Federal Housing Agency (FHA) to make changes to the Real Estate Settlement Procedures Act known as RESPA. 

 The current economic conditions in the housing industry led to these changes. Everyday on the news we hear how bad the housing market is with homeowners going into foreclosure and the banks are modifying mortgages to save a few homeowners from losing their homes. Some of these borrowers were put into loans considered extremely risky, volatile and with higher payments.  When some adjustable loans adjusted people were forced to refinance. Unfortunately, the property values were much lower leaving people owing more than what the property was actually worth. This left alot of homeowners out in the cold to the point where they could not afford the mortgage.   

The changes that were made to the Good Faith Estimate are noticably drastic.  Allied Mortgage Group will give 2 distinct scenarios with different closing costs showing higher settlement costs or a higher interest rate with lower closing costs. The other change is certain services can be shopped by the borrower.  Your Allied Mortgage Group Loan professional will inform you what services can be shopped around for.  We always think of the customer first and try to save you as much money when it comes to third party charges. 

Understanding your loan is important to us. We strive to make sure that you understand all the terms upfront before you go to settlement whether it is a refinance or purchase.  If you do not understand the terms of the loan or any other part just call us anytime.  Apply Now!  It is fast, simple and secure.  One of our loan professionals will get back to you within minutes after you have finished filling out the application.  We will be able to get you pre-approved.  To find out your credit score before applying click here. 

Have a great holiday and a safe one! 2010 will be a better year for everyone.