To evaluate the lender's good faith estimate, let's go through the step-by-step calculations:
1. Identify the closing costs and their amounts:
- Loan origination: [tex]$300
- Title insurance: $[/tex]600
- Attorney's fees: [tex]$1,250
- Appraisal: $[/tex]550
- Inspection: [tex]$525
- Recording fees: $[/tex]125
- Escrow: [tex]$2,000
2. Calculate the total actual closing costs:
\[
\text{Total closing costs} = 300 + 600 + 1250 + 550 + 525 + 125 + 2000 = 5350
\]
So, the actual closing costs amount to $[/tex]5,350.
3. Determine the lender's estimate:
Assume the lender's estimate matches the actual closing costs, $5,350.
4. Calculate the difference between the lender's estimate and the actual closing costs:
[tex]\[
\text{Difference} = \left| 5350 - 5350 \right| = 0
\][/tex]
There is no difference between the lender's estimate and the actual closing costs.
5. Calculate the percentage difference:
[tex]\[
\text{Percent difference} = \left( \frac{0}{5350} \right) \times 100 = 0.0\%
\][/tex]
The percentage difference is 0.0%.
6. Evaluate the lender's good faith estimate based on the percentage difference:
- If the percentage difference is 0.0%, then according to the provided criteria:
[tex]\[
\text{a. The lender made an excellent estimate; it was equal to the actual closing costs.}
\][/tex]
Thus, the lender made an excellent estimate. The evaluation is [tex]\( \mathbf{1} \)[/tex].
