Loan officers using a Work Sheet have been known to provide the applicant with unrealistically low quotes of fees, etc. that they would have to pay in order to persuade them to get their business. However, if the Good Faith Estimate is used to give the borrower the quotes, according to new federal rules, they must be accurate, otherwise excess amounts due will be paid by the lender when the escrow closes.
If you are in the early stages of shopping for a mortgage, use of the Work Sheet will give you a non-guaranteed ball-park estimate of rates, payments and closing costs. Once you become serious about obtaining a loan, you will want the accurate figures and federal government protections that will be provided when using the 3 page Good Faith Estimate. Be aware that a loan officer may not refuse to give you a Good Faith Estimate should you ask for one, and they cannot provide the Good Faith Estimate only under the condition that you agree to obtaining your mortgage via their company.
The best way to do your mortgage shopping is to provide the necessary information in order to make an application and request a Good Faith Estimate. Then you can shop the GFE around in order to obtain the best possible mortgage.
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