What is a Good Faith Estimate?

A Good Faith Estimate, or GFE, is a written estimate provided by the lender of the closing costs a borrower is likely to pay at settlement. This estimate must be provided to all loan applicants.

What is an REO?

REO stands for Real Estate Owned and it is referring to homes or condos that have been foreclosed on by the bank but that were never sold off at auction. So, these homes are owned by the Banks.

Often, you can get a great deal on an REO property because the banks generally want to get the real estate "off their books" but they are almost always sold 'as is' so as a Buyer you want to make sure you are willing to take that risk.

Power of the Rate

Here is an example of why interest rates are so powerful to the home buyer:

A buyer makes $10,000 per month, this is what they might afford on a conventional type loan...


The moral of the story, rates drastically affect how much a buyer can afford so it is more important to buy when rates are low then to wait for prices to correct as lower rates will likely affect your payment more then a lower price.

Source: Bank of America Home Loans

What is an Affidavit of Identity?

The Escrow Company and/or the Title Company might require you to fill out an Affidavit of Identity when you are purchasing or selling a home.

It is a form that they will require you to fill out in order to make sure that you are the correct person that is to be added to the title report if you are a buyer or to make sure that you are the correct person that is on the title report if you are a seller. If there are a lot of people with your name they want to be sure that you are the person that is purchasing the property or that you are the person who has the right to sell the property.

Is my signing date the same as my closing date?

No, the signing date is not the same as the closing date.

The signing date is the day that you meet with a Notary and sign loan documents (if you are a buyer), the Deed, and any other legal documents needed to transfer title of a property.

The closing date is the actual day that the Deed is recorded with the County and title transfers. This usually occurs a day or two after the signing date and is the date the keys are exchanged.

What is a Home Warranty?

A home warranty is a service contract, normally for one year, which helps protect home owners against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear. Coverage is for systems and appliances in good working order at the start of the contract.

Often you can buy a home warranty when you purchase a house or condo and sometimes a Seller may offer it as a Buyer bonus to make their property stand out.

All policies are different so make sure to check the warranty policy to see which items are covered and what all the fees are.

What is a Conforming Loan Limit?

Fannie Mae and Freddie Mac are restricted by law to purchasing single-family mortgages with origination balances below a specific amount, known as the “conforming loan limit.” Loans above this limit are known as jumbo loans.

Loan limits for mortgages originated in 2009 are set under the provisions of the American Recovery and Reinvestment Act of 2009.

Seattle's conforming loan limit for a single unit home can be up to $567,500*.

*always check with your lender for individual circumstances