What is a Good Faith Estimate?
Required by federal law, the Good Faith Estimate is a written list of the estimated closing costs associated with your mortgage transaction, including the lender’s charges along with the local closing agent’s charges and fees. It also includes estimated amounts for real estate property taxes and homeowner’s insurance.
The Good Faith Estimate (GFE) discloses estimated costs associated with your mortgage transaction. The GFE, required by Federal law, estimates the lender’s charges along with the local closing agent’s charges and fees. The GFE also includes estimated amounts for real estate and property taxes and homeowner’s insurance.
All lenders are required to provide a good faith estimate to allow you to compare one lender to another. The trick is deciphering how all the fees, points, and other charges impact the cost of your loan. If you been provided a Good Faith Estimate we’ll help you make a direct and accurate comparison with what we can do for you.
Law requires the lender within 3 business days from the date you apply, to furnish you with an itemized estimate of closing costs. Keep in mind that this is an estimate based on the information available at the time. Your actual closing costs may vary somewhat depending on certain costs (i.e. how much the appraisal actually costs, the actual closing date, the amounts of your real estate taxes and homeowner’s insurance.) Return to the top of page.
