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Module 4
Steps for Buying a Home
Getting the Loan
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Good Faith Estimate

The Costs of Closing Your Home LoanWithin three days after submitting your application to the lender, the lender is required by law to provide you with a Good Faith Estimate (GFE) of costs of closing your home loan. You should also receive the booklet, “Buying Your Home – Settlement Costs and Information”, which we recommend you read carefully. On a purchase loan, you will also receive a Truth-in-Lending (TILA) document that identifies certain significant terms and features of your loan.

Comparing Home Loans
The TILA disclosure shows the Annual Percentage Rate (APR), which is different from and usually higher than the interest rate you have been quoted on your loan. The APR calculation includes many, but not all, of the costs of obtaining the loan. The purpose of the APR is to make it possible for borrowers to compare the costs of one home loan to another. The APR is intended to prevent lenders from disclosing a low interest rate and hiding large lender fees.

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  Countrywide Home Loans, a division of Countrywide Bank, FSB is an Equal Housing Lender. © 2007 - 2008 Countrywide Financial Corp. Trade/service marks are the property of Countrywide Financial Corp., and/or its subsidiaries. All rights reserved. The content of this website is provided for the convenience of our readers and is for informational purposes only. Readers are encouraged to use the content of this website to supplement their knowledge and to also seek out other reliable sources of information prior to engaging in the home financing and home buying processes. The information featured herein is intended to be accurate and we will make efforts to keep this website updated. However, due to the rapid changes occurring in the programs, products, services offered within the home financing industry, we do not guarantee the accuracy of the information presented. Countrywide is not responsible for the contents of, or products or services offered on, third party Web sites and provides links to such sites solely for your convenience. This is not a commitment to lend. All rights reserved.