What You Will NOT Find in Your Lender’s New GFE

*Sales Price

*Earnest Down Payment

*Property Taxes Due at Closing


*Builder/Seller/Realtor Credits

*Cost breakdowns (HUD requires all title fees to be bundled and all origination fees to be bundled as well; some of these are broken down on the new HUD-1)

*Yield spread premium/discount points…..(These are disclosed on the new GFE, but this terminology is not used.     Instead, YSP is called a “credit” and discount points are called a “charge”.

*Prepaid finance charges….This is important because this can help in computing the annual percentage rate.

*Cash to Close.

 All of the above information could typically be found on Good Faith Estimate forms that have been used for the last 30 years.  

Leave a Reply