Good Faith Estimate (GFE) – Understanding

Throughout my day and in this current market I provide and disclose GFEs; I move on assuming all borrowers understand the alphabet of acronyms.  A potential client made me aware today that although I have been serving up GFEs for a better half of this decade that the majority of borrowers have no clue what our industry acronyms and initials stand for.   With that said I will break down the GFE essentials.  On a GFE to the right of all fees you will see check marks and above those check marks you will see the following acronyms.

PFC – Prepaid Finance Charges (APR items)
S – Seller Paid
F – FHA Allowable
POC – Paid Outside of Closing

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