A home buyer gets a new Good Faith Estimate right before closing that is almost $5,000 more expensive than the original GFE. He wants to know if this is legal, or if he’s getting ripped off. Here is his question with my answer.
Q: We are purchasing a new home. The builder gives us incentive to use their mortgage broker and lender. The broker gave us a good faith estimate before the start of building. This GFE said we would receive credit of about $2,000 to offset the $6,000 origination fee. Four months later, as the home nears completion, we locked in on a rate. For some reason, the broker then sends a new GFE. Pretty much the same as the old GFE, except the new GFE says we would only receive about $180 to offset the $6,000 origination fee. Is this legal? Thank you.
A: In my opinion…
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