What is a Good Faith Estimate or GFE?
When you apply for a mortgage to buy residential property, the lender is required to give you a “Good Faith Estimate” (also known as GFE) of the closing costs and expenses. This must be given to a consumer within three days of the application. A GFE allows a borrower to compare the real costs of mortgages among quotes from different lenders. All lenders must use this standardized form to explain the costs of the loan. The GFE covers every expense associated with a home loan including bank fees, title insurance, recording fees, taxes and other charges.
